Continued Boost from News Drives Overall Market Strength, Stainless Steel Scrap's Economic Advantage Stands Out, Sentiment to Hold Prices Firm Heats Up [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China rose slightly to 9,250-9,350 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts also increased slightly to 9,100-9,400 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel using entirely stainless steel scrap is approximately 13,002.63 yuan/mt, while the cost using entirely high-grade NPI is approximately 13,288.02 yuan/mt. This week, a steel mill in south China did not adjust its tax-inclusive procurement price for 304 stainless steel scrap.

This week, news related to Indonesian nickel mines continued to influence SS futures, driving futures further upward. Confidence in the stainless steel finished product market gradually recovered, and spot quotations followed the rise. Meanwhile, high-grade NPI prices continued to rise significantly during the week, and high-carbon ferrochrome prices held firm. Driven by this, stainless steel scrap prices also strengthened. Coupled with limited year-end inventory at scrap yards, market sentiment to hold prices firm and reluctance to sell intensified, leading to a tight supply situation. Additionally, market expectations for potential production increases by stainless steel mills in January, along with the significant economic advantage of stainless steel scrap compared to high-grade NPI, supported solid demand for stainless steel scrap. Overall, stainless steel scrap prices are expected to hold up well in the short term.