Trading Stagnated Before the Holiday, Stainless Steel Scrap to Maintain Stable Pattern in the Short Term [SMM Stainless Steel Scrap Market Weekly Review]

This week, 304 stainless steel scrap off-cuts prices in east China held steady at 9,600-9,700 yuan/mt, while prices for the same specification in Foshan dropped back slightly to a range of 9,400-9,700 yuan/mt. From the raw material production cost perspective, the current cost of producing stainless steel entirely using stainless steel scrap was approximately 13,417.11 yuan/mt, whereas the cost using entirely high-grade NPI was 14,534.9 yuan/mt.

The stainless steel scrap market remained largely flat and stagnant this week, primarily influenced by the Chinese New Year holiday and indirect effects from futures. Stimulated by news related to Indonesian nickel mine approvals, SS futures strengthened, and SHFE nickel rose in tandem, driving expectations of tightening supply in the raw material market, though the direct impact on stainless steel scrap was limited. With the Chinese New Year approaching, most scrap yard traders have taken holidays and left the market, leading to a complete halt in trading. Although the economic advantage of stainless steel scrap over high-grade NPI further widened this week, this benefit failed to translate into prices due to the trading standstill, leaving stainless steel scrap prices stable with no significant changes in trend. The market overall exhibited a pattern of "supply and demand both halted, prices holding steady," with industry participants generally on holiday and watching, lacking substantive trading support. For most of February, stainless steel scrap trading is expected to remain suspended, with both supply and demand sides in a stagnant state, and no clear drivers for price changes. Looking ahead, the stainless steel scrap market is likely to maintain the current pattern in the short term; in the long term, the key focus will be on post-holiday demand recovery during the "Golden March, Silver April" period, coupled with factors such as reduced Indonesian nickel ore quotas and futures market trends. If demand recovers as expected, it may drive stainless steel scrap prices higher, with the market holding overall optimistic expectations.