The prices of 316L stainless steel coil materials in the East China region have slightly decreased.
Weak spot contracts dragged down scrap stainless steel. The cost advantage supported the market. This week, the price of 316L stainless steel coil scraps in the East China region dropped slightly, with the quoted range being 10,600 - 10,700 yuan per ton; the same specification of scrap stainless steel in Foshan remained stable, with the price range at 10,400 - 10,700 yuan per ton. Analyzing from the production cost perspective at the raw material end, the current cost of producing stainless steel using 316L stainless steel coils as the raw material is approximately 14,821.71 yuan per ton, while the production cost using high-nickel pig iron is 15,173.94 yuan per ton. The price of scrap stainless steel dropped this week. The overall SS futures market operated weakly, with continuous downward pressure, which then transmitted to the spot market, leading to a simultaneous drop in the spot price of stainless steel products; although the alternative raw material, high-nickel pig iron, also dropped, its own raw material fundamentals were relatively strong, and the price decline was limited. Currently, during the decline of stainless steel spot prices, steel mills still maintained certain smelting profits and production intentions remained high, and the steel mill production schedule did not show a reduction; at the same time, the decline in high-nickel pig iron was limited, and the economic advantage of scrap stainless steel over high-nickel pig iron was further highlighted within the week. Even though the industry tax invoice issue still existed and did not affect the purchasing rhythm of steel mills, the demand for scrap stainless steel with better economic advantages remained good. Overall, this week, the scrap stainless steel market presented a "weak futures, resistant raw materials, demand supporting" downward trend, with negative market factors dominating the short-term trend, but the demand for steel and the cost price difference advantage formed strong support.
