This week, prices of 304 stainless steel scrap off-cuts in east China rose, with a quotation range of 10,550-10,650 yuan/mt. In Foshan, the same-specification stainless steel scrap off-cuts also strengthened, with a price range of 10,050-10,450 yuan/mt. From a raw material cost perspective, the current cost of producing stainless steel entirely from stainless steel scrap was approximately 14,761.4 yuan/mt, while the cost using entirely high-grade NPI reached 15,134.31 yuan/mt.
Stainless steel scrap prices further strengthened this week. SS futures surged significantly, driven by SHFE nickel's rally amid geopolitical conflicts, which in turn transmitted to the spot market and pushed stainless steel spot prices higher in tandem. The alternative raw material high-grade NPI also rose in sympathy, bullish sentiment continued to build, and stainless steel scrap prices followed suit, maintaining a strong trend. The recent rapid rise in high-grade NPI prices further widened the cost advantage of stainless steel scrap over high-grade NPI. This core competitive edge continued to drive steel mills' preference for stainless steel scrap even amid persistent tax invoice issues plaguing the industry. Meanwhile, smelting margins at stainless steel mills gradually recovered, production enthusiasm remained high, production schedules stayed high, and procurement demand for stainless steel scrap remained solid, providing firm support for price rises. Overall, the stainless steel scrap market this week exhibited a further strengthening pattern characterized by "futures leading, raw material linkage, and demand support." Various supportive factors jointly dominated market trends, and although tax invoice issues persisted, they did not significantly constrain the strong price momentum. Stainless steel scrap prices were expected to hold up well in the near term.
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