This week, the price of 304 stainless steel scrap off-cuts in east China rose to 9,450-9,550 yuan/mt; the same specification stainless steel scrap off-cuts in Foshan also increased, with a price range of 9,400-9,700 yuan/mt. Cost side, the current production cost of stainless steel using entirely stainless steel scrap was approximately 13,239.47 yuan/mt, while the cost using entirely high-grade NPI was 13,647.06 yuan/mt.
This week, developments regarding Indonesian nickel mine approvals and risk-off sentiment triggered by geopolitical conflicts continued to affect SS futures, with the futures maintaining an overall upward trend, and spot stainless steel finished product prices also rose accordingly. High-grade NPI continued its strong upward trend, high-carbon ferrochrome stopped falling and rebounded, gradually strengthening; coupled with steel mills raising their purchase prices for stainless steel scrap, stainless steel scrap prices rose in tandem amid the generally positive market sentiment. Currently, stainless steel scrap holds a significant cost advantage relative to high-grade NPI. Steel mills, utilizing existing raw material inventories, saw some profit recovery, the January production schedule is expected to increase, and demand expectations for stainless steel scrap are also anticipated to rise. In the short term, stainless steel scrap prices are expected to hold up well.
