This week, the price of 304 stainless steel scrap off-cuts in east China rose to 9,950-10,050 yuan/mt. In Foshan, the price of 304 stainless steel scrap off-cuts held steady at 9,650-9,950 yuan/mt. Currently, when calculated by raw material, the production cost of stainless steel produced entirely from stainless steel scrap is approximately 13,831.58 yuan/mt, while the production cost of stainless steel produced entirely from high-grade NPI is approximately 13,416.71 yuan/mt. This week, the tax-exclusive purchase price of 304 molten steel at a steel mill in south China was 9,330 yuan/mt, up 270 yuan/mt from the previous period, which is equivalent to a tax-inclusive price of approximately 1,006 yuan/mtu for high-grade NPI. This week, despite the continued downward trend in the prices of high-grade NPI and high-carbon ferrochrome, the spot price of finished stainless steel products strengthened significantly, driven by favourable macro policies. The price of stainless steel scrap also followed suit and increased. Market confidence was boosted by the favourable policies. Additionally, the supply of stainless steel scrap in the market was tight, prompting some traders to choose to hold back their inventory and stand firm on quotes, further supporting the upward price trend. However, compared to high-grade NPI, the economic efficiency of stainless steel scrap has clearly become less competitive. As the impact of favourable macro policies gradually fades, the price of finished stainless steel products has begun to weaken. Coupled with the continuous decline in the prices of raw materials such as high-grade NPI and high-carbon ferrochrome, the price of stainless steel scrap is expected to struggle to maintain its strong performance under the dual pressures of cost disadvantages and weak demand.

This week, the price of 304 stainless steel scrap off-cuts in east China weakened and declined to 9,600-9,700 yuan/mt, while the price of 304 stainless steel scrap off-cuts in Foshan also declined to 9,400-9,700 yuan/mt. Currently, based on raw material calculations, the production cost of stainless steel using entirely stainless steel scrap is approximately 13,417.11 yuan/mt, and the production cost of stainless steel using entirely high-grade NPI is approximately 13,704.2 yuan/mt. This week, a steel mill in south China purchased 304 stainless steel scrap molten steel at 9,150 yuan/mt. This week, the prices of stainless steel finished products, high-grade NPI, and high-carbon ferrochrome all declined simultaneously. The persistent inversion of costs and selling prices for stainless steel mills has made it difficult to reverse, leading to a significant reduction in companies' purchase willingness for high-priced raw materials. Affected by this pessimistic market sentiment, the price of stainless steel scrap also fell. Although stainless steel scrap still has a clear cost advantage compared to high-grade NPI, under the overall cautious and wait-and-see market atmosphere, the trading activity in the stainless steel scrap market was noticeably insufficient this week. At the same time, the poor performance of stainless steel mills' May futures orders has exacerbated the inversion of costs and profits, strengthening expectations for production cuts. Additionally, the subsequent impact of US tariff policies has not yet fully materialized, creating significant uncertainty on the demand side for stainless steel scrap. Considering the above factors, it is expected that the price of stainless steel scrap will continue to maintain a weak trend in the short term.

[SMM Analysis: Stainless Steel Finished Products Strengthen, Driving Up Stainless Steel Scrap, Raw Material Cost Advantage Gradually Lost] This week, the price of 304 stainless steel scrap off-cuts in east China increased to 10,000-10,100 yuan/mt; in Foshan, the price rose to 9,800-10,100 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel made entirely from stainless steel scrap is approximately 13,890.79 yuan/mt, while the cost of stainless steel made entirely from high-grade NPI is approximately 13,668.04 yuan/mt. This week, a steel mill in south China raised its tax-inclusive purchase price for 304 stainless steel scrap molten steel to 10,100 yuan/mt, an increase of 100 yuan/mt compared to the previous period...

Nickel Ore The Premium for Indonesian Domestic Trade Laterite Nickel Ore Continues to Rise, but the Growth Rate Slows Down High-Grade NPI High-Grade NPI Market Transactions Hit New Highs; Prices Expected to Remain Relatively Stable with Strong Trend Under Cost Support

[SMM Analysis: Stainless Steel Production Schedule Expected to Increase, Stainless Steel Scrap More Economical with Rising Prices] This week, the price of 304 stainless steel scrap off-cuts in east China strengthened and rose to 9,650-9,750 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts increased to 9,500-9,800 yuan/mt. Currently, by raw material calculation, the production cost of stainless steel made entirely from stainless steel scrap is approximately 13,476.32 yuan/mt, while the production cost of stainless steel made entirely from high-grade NPI is approximately 13,554.49 yuan/mt. This week, the tax-inclusive purchase price of 304 stainless steel scrap molten steel at a steel mill in south China was 10,000 yuan/mt, up by 100 yuan/mt compared to the previous period...

[SMM Analysis: Economic Advantage of Stainless Steel Scrap Maintained, Market Transactions Expected to Rebound] This week, the price of 304 stainless steel off-cuts in east China increased to 9,350-9,450 yuan/mt, while in Foshan, the price rose to 9,350-9,650 yuan/mt. Currently, by raw material calculation, the production cost of stainless steel made entirely from stainless steel scrap is approximately 13,121.05 yuan/mt, while that made entirely from high-grade NPI is approximately 13,370.82 yuan/mt. This week, large stainless steel producers in south China have not updated their procurement prices for stainless steel scrap...

[Beigang New Materials Achieved an 87% YoY Increase in Billet Production in January] Beigang New Materials adhered to the "Three Fixed and Three Don'ts" principle, prioritizing sales and strengthening efficient coordination across production, supply, and sales. Thanks to the seamless connection and smooth operation of various processes, along with sufficient supplies of pig iron and molten steel, billet production in January increased by 87% YoY, while finished steel coil production also saw significant YoY growth. While ensuring production, the company's marketing team actively advanced market efforts, exceeding the monthly target for stainless steel orders in January and achieving better-than-expected demand in the off-season during the Chinese New Year period. Additionally, the company innovatively launched announcements for the sale of nickel ore and waste sliding plates on the group's electronic bidding and procurement platform for the first time, introducing a new model for by-product sales and implementing multiple measures to enhance marketing quality and efficiency.

[SMM Analysis: Slow Post-Holiday Resumption, Tight Supply in Stainless Steel Scrap Market with Prices Expected to Rise] This week, the price of 304 stainless steel scrap off-cuts in east China remained stable at 9,250-9,350 yuan/mt, while in Foshan, the price also held steady at 9,300-9,600 yuan/mt. Currently, by raw material calculation, the production cost of stainless steel entirely using stainless steel scrap is approximately 13,002.63 yuan/mt, while the cost entirely using high-grade NPI is about 13,218.61 yuan/mt. This week, a steel mill in south China raised its tax-inclusive purchase price for 304 stainless steel scrap molten steel to 9,800 yuan/mt, up by 100 yuan/mt from the previous price, and the tax-inclusive purchase price for 316 molten steel was 18,400 yuan/mt...

In response to global trends and the low-carbon demands of automotive end-users, steel producers actively promote the R&D and production of low-carbon automotive steel technologies.

**Nickel Morning Meeting Minutes on February 21st** **SMM News on February 20th:** On February 20th, the main contract for Shanghai nickel opened at 126,850 yuan/ton and closed at 126,570 yuan/ton, an increase of 670 yuan/ton compared to the previous trading day's closing price. Trading within the day was stronger compared to the previous trading day, with a volume increase of 45,503 lots and a decrease in open interest of 3,811 lots. This combination indicates that the bears actively closed positions, but trading volume increased. If this phenomenon occurs at the bottom, the characteristic often seen on the market surface is a slight upward trend because the price has fallen to the bottom, the bearish sentiment is relatively good, and the bullish sentiment is weak, and the price will not immediately rise.