Stainless steel scrap holds steady at highs, market wait-and-see sentiment intensifies as Chinese New Year approaches [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China was basically stable, quoted at 9,700-9,800 yuan/mt; the price of the same specification stainless steel scrap off-cuts in Foshan was also stable, with a price range of 9,700-10,000 yuan/mt. From the raw material production cost perspective, the current cost of producing stainless steel entirely using stainless steel scrap was approximately 13,535.53 yuan/mt, while the cost of using entirely high-grade NPI was 14,364.2 yuan/mt.

This week, SS futures continued to rise, further driving up the price of stainless steel finished products, and raw material prices also strengthened accordingly—high-grade NPI continued to hold up well, and high-carbon ferrochrome hovered at highs. However, amid the overall positive market sentiment, the increase in stainless steel scrap prices was relatively limited, remaining basically stable. With current market prices at high levels, a cautious fear of high prices pervaded the stainless steel scrap market, and purchasing enthusiasm among industry participants noticeably declined; approaching the Chinese New Year holiday, traders at scrap yards showed a significantly stronger willingness to lock in profits and realize cash returns. From a cost-performance perspective, the cost advantages of stainless steel scrap relative to high-grade NPI became more pronounced, providing strong support for its price. In summary, although the short-term stainless steel scrap market is affected by fear of high prices and pre-holiday cash withdrawal needs, limiting price fluctuation room, it is expected to maintain stable operation due to its significant cost advantages and the overall strength in the raw material market.