Stainless Steel Spot Prices and Costs Rise in Tandem, Steel Mill Profits Further Expand [SMM Analysis]

Published: Jan 23, 2026 17:20

Save

This week, stainless steel spot prices and production costs rose in tandem, further widening steel mills' profit margins. Taking 304 cold-rolled products as an example, based on the raw material prices of the day, the full cost profit margin rebounded to 1.12% this week; when calculated using the raw material inventory cost, it reached 8.2%.

On the nickel-based raw material cost side, high-grade NPI prices continued their upward trend this week. Against the backdrop of expectations for tightening nickel ore supply, rising nickel ore prices pushed up high-grade NPI costs. Coupled with the boost from rising futures, traders showed a strong willingness to hold prices firm. Although stainless steel mills had limited acceptance of the current high nickel-iron prices, resulting in overall subdued transactions, prices maintained a strong pattern. As of Friday this week, high-grade NPI with 10-12% grade rose by 25 yuan per mtu, settling at 1,042.5 yuan/mtu.

In the stainless steel scrap market, despite strong prices for both stainless steel finished products and high-grade NPI, stainless steel scrap prices overall held steady. Current prices are already at high levels, leading to downstream fear of high prices. Approaching the Chinese New Year holiday, stainless steel scrap traders actively sold to lock in profits and recoup funds, showing a strong willingness to sell. Although stainless steel scrap still holds a significant economic advantage compared to NPI, prices overall held steady. As of Friday this week, Shanghai 304 off-cuts prices held steady, with the latest offer around 9,750 yuan/mt.

On the chrome-based raw material cost side, high-carbon ferrochrome prices edged up this week. Boosted by continuously rising stainless steel prices, ferrochrome market sentiment improved. As the Chinese New Year approaches, stainless steel mills released pre-holiday stockpiling demand. Ferrochrome producers generally have orders scheduled until mid-to-late February, leading to tightening availability of retail material in the market. Additionally, chrome ore prices continued to rise on strong expectations, pushing up the cost center for ferrochrome and further supporting prices to hold steady at highs. As of Friday this week, high-carbon ferrochrome prices in Inner Mongolia rose 25 yuan/mt (50% metal content) WoW, settling at 8,450 yuan/mt (50% metal content).

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

23 hours ago

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

23 hours ago

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

23 hours ago

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

23 hours ago