Cost Efficiency of Stainless Steel Scrap is Higher than that of High-Grade NPI Last Week

SHANGHAI, Feb 27 (SMM) - The cost efficiency of stainless steel scrap was higher last week. The cash cost of cold-rolled stainless steel produced completely by stainless steel scrap was about 16,969.74 yuan/mt, and that of stainless steel produced completely by high-grade NPI was about 17,127.59 yuan/mt.  Last week, the bid price of stainless steel scrap offered by Tsingshan Group was about 12,200 yuan/mt or 1,316 yuan/mtu. Stainless steel scrap suppliers which bore high costs were less willing to ship at 12,400 yuan/mt. Therefore, when Tsingshan lowered purchase prices again, most traders chose to wait and see. The market supply of stainless steel scrap dropped, providing an upward momentum for stainless steel scrap prices. NPI traders who carried high inventories of goods dumped NPI at low prices to mitigate losses since the downstream companies were bearish on NPI prices. Short-term high-grade NPI prices will fall amid the growing inventory and the rising cost efficiency of stainless steel scrap. SMM believes that the cost efficiency of stainless steel scrap will fall gradually.