SMM

Currently, the cost of producing stainless steel from stainless steel scrap is around 13,417.11 yuan/mt, while producing it from high-grade NPI costs about 13,336.57 yuan/mt. The cost efficiency of high-grade NPI is better than that of stainless steel scrap. Stainless steel prices were boosted by strong market conditions and a decrease in social inventories, leading to a relatively strong performance. The benchmark price for 304 mill bur edge cold-rolled stainless steel increased by around 300 yuan/mt WoW. In terms of supply, as the year-end approaches, downstream manufacturing plants are operating at a lower capacity. The recycling volume of stainless steel scrap decreased. In terms of demand, in December, stainless steel production demand remained stable, but some steel mills might be planning to reduce their production. Overall, there's a slight weakness in demand for stainless steel scrap. In terms of high-grade NPI, there has been a slight recovery last week. The decrease in low-cost resources, coupled with a reduction in social inventory of NPI, has led to a relatively strong trend in prices last week. With stainless steel demand holding steady in December and steel mill profits recovering, there is still potential for an increase in prices for high-grade NPI. Considering that stainless steel scrap prices will be supported by stainless steel price, it is anticipated that high-grade NPI will maintain its cost efficiency.