This week, stainless steel spot prices and production costs rose in tandem, though the losses between steel mill costs and prices narrowed slightly. Taking 304 cold-rolled products as an example, based on raw material prices on the day, the full cost profit margin was -0.7% this week; calculated based on raw material inventory costs, it reached 1.15%. Nickel raw material costs, high-grade NPI prices remained in the doldrums this week. Although news disruptions from Indonesia persisted during the week and nickel ore prices held up well, with most NPI producers suffering losses, stainless steel prices currently struggled to rise, while steel mills themselves faced significant cost pressure and showed low acceptance of high-priced raw materials. Although the NPI market had the intention to probe higher, weak overall transactions constrained it, and actual price increases faced resistance. As of this Friday, high-grade NPI with a grade of 10-12% fell by 0.5 yuan/nickel unit to 1,083.5 yuan/nickel unit. Stainless steel scrap market, stainless steel scrap prices rose slightly this week, mainly boosted by macro news, stronger futures, and rising finished steel prices. The US-Iran conflict and news of Indonesia taxing nickel products stimulated stronger SS futures, pushing stainless steel spot prices higher and in turn boosting stainless steel scrap prices. Although stainless steel scrap had a clear economic advantage, tight tax invoices caused by reverse invoicing and high inventory capped its upside room, so it only posted a slight increase. Overall, the stainless steel scrap market saw a mild upward trend this week, with short-term support still in place but insufficient upward momentum. If the tax invoice issue remains unresolved, prices are expected to continue fluctuating. As of this Friday, the price of 304 off-cuts in Shanghai rose by 100 yuan/mt to about 10,150 yuan/mt. Chrome raw material costs, high-carbon ferrochrome prices remained stable this week. Although overseas market chrome ore futures prices still had room to be raised, China port chrome ore inventory remained high. In addition, ferrochrome producers recently showed weak willingness to purchase chrome ore, and China chrome ore prices pulled back, weakening cost support for ferrochrome. Meanwhile, current ferrochrome retail prices were already significantly higher than steel mill tender prices, and further gains in high-carbon ferrochrome prices faced resistance. As of this Friday, high-carbon ferrochrome prices in Inner Mongolia were unchanged from last week at 8,650 yuan/mt (50% metal content).

This week, 304 stainless steel scrap off-cuts prices in east China strengthened to 10,100-10,200 yuan/mt; stainless steel scrap off-cuts of the same specification in Foshan also rose, with prices at 9,800-10,100 yuan/mt. Raw material cost side, the current cost of producing stainless steel entirely from stainless steel scrap was about 14,218.64 yuan/mt, while the cost of production using only high-grade NPI was 14,686.86 yuan/mt. This week, stainless steel scrap prices rose slightly, mainly driven by macro news, firm futures, and gains in finished product prices. The US-Iran geopolitical conflict was unlikely to end in the short term, while news related to Indonesia's export tax and windfall tax on nickel products continued to ferment. These two bullish factors jointly kept SS futures holding up well. At the same time, supported by higher guidance prices from stainless steel mills, spot stainless steel finished product prices also strengthened and moved higher, directly transmitting to the stainless steel scrap market and pushing its prices up slightly. Performance on the substitute raw material side diverged. Affected by stainless steel mills' continued efforts to push for lower prices, high-grade NPI generally remained stable this week, with no obvious change; high-carbon ferrochrome, however, was dragged down by a sharp buildup in chrome ore inventory, making its price rally difficult to sustain, and its overall support for stainless steel scrap was limited. Although stainless steel scrap still maintained a clear economic advantage over high-grade NPI, providing some support for its prices, the constraining factors were also prominent. Under the impact of the reverse invoicing policy, the shortage of tax invoices had not been alleviated, and current stainless steel scrap inventory remained high. These two factors jointly capped the upside room for stainless steel scrap prices, resulting in only a slight increase rather than a sustained upward trend. Overall, the stainless steel scrap market showed a mild upward pattern this week, characterized by "futures support, finished product-driven gains, and evident constraints." Although short-term supportive factors remained in place, upward momentum was insufficient due to the drag from tax invoice and inventory issues. If the tax invoice problem remains difficult to resolve effectively in the short term, stainless steel scrap prices are expected to continue fluctuating within a range.

[SMM Chrome Weekly Review: Transactions Softened, Ferrochrome Temporarily Stable, Futures Raised and Chrome Ore Remained Firm] March 27, 2026: Ferrochrome and chrome ore prices saw no adjustments for the time being...

[SMM Daily Chrome Commentary: Cost Support Kept Offers Firm, with Limited Recent Market Fluctuations] March 25, 2026: Chrome ore quotations saw no adjustment, while low- and micro-carbon ferrochrome prices were raised somewhat...

[SMM Chrome Daily Review: Price Gains Slowed, and the Chrome Market Operated Steadily] March 23, 2026 News: Quotations for chrome ore and ferrochrome remained unchanged for the time being...

According to data from China Customs: Combined for January–February 2026, China imported 265,100 metric tons of high-carbon ferrochrome in total, a year-on-year decline of 51.6%. Breakdown by origin: imports from South Africa were 40,700 metric tons, down 83.3% year-on-year; imports from Kazakhstan were 158,400 metric tons, down 19.7% year-on-year.