This week, the prices of 304 stainless steel scrap off-cuts in east China strengthened and rose, reaching 9,600-9,700 yuan/mt; in Foshan, the prices of 304 stainless steel scrap off-cuts rose slightly, reaching 9,350-9,650 yuan/mt. Currently, calculating by raw material, the production cost of stainless steel produced entirely from stainless steel scrap is approximately 13,417.11 yuan/mt, while the production cost of stainless steel produced entirely from high-grade NPI is approximately 13,054.57 yuan/mt. This week, a steel mill in south China did not update its purchase prices for stainless steel scrap.
This week, under the positive influence of macro policies, the stainless steel futures market saw a significant rise, market confidence was restored, and trading activity increased. Driven by this, the prices of finished stainless steel products also rose, with high-grade NPI prices also showing a strengthening trend. The prices of stainless steel scrap further followed suit, showing an upward trend. Currently, the tight supply situation in the stainless steel scrap market has not yet been alleviated, and traders still maintain a mindset of refusing to budge on prices and holding back sales. Despite the simultaneous rise in high-grade NPI prices and stainless steel scrap prices, the economic disadvantage of stainless steel scrap has become even more pronounced. Overall, in the recent period, driven by macro policies, finished stainless steel products have successfully broken away from their previous lows, showing a strong upward momentum. However, the repair of fundamental factors is not significant, and there are still doubts about whether macro policies can continue to provide support.
