Futures strength drives scrap rise, off-season rigid demand caps gains at a controllable level [SMM Stainless Steel Scrap Market Weekly Review]

Published: Jul 17, 2026 16:20

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[SMM Stainless Steel Scrap Weekly Review] Futures Strength Drives Scrap Uptick; Off-Season Demand Keeps Gains in Check This week, 304 stainless steel scrap off-cuts prices in east China rose, with a quotation range of 10,200-10,300 yuan/mt; in Foshan, 304 scrap off-cuts prices also moved up, in the range of 10,100-10,400 yuan/mt. From the raw material cost side, producing stainless steel entirely from stainless steel scrap currently costs about 14,351.25 yuan/mt, while using high-grade NPI would cost as much as 14,947.08 yuan/mt—the two still maintain a sizable cost spread. Stainless steel scrap prices edged up this week. During the week, SS futures strengthened overall, and bullish sentiment from futures flowed through to the spot market, nudging up spot prices for stainless steel finished products in tandem. Although steel mills still retained a desire to bargain down prices for raw material procurement, and the substitute raw material high-grade NPI prices continued to be in the doldrums, leaving overall raw material support moderate, stainless steel scrap followed the pace of the spot strength in finished products, moving up in sync and generally holding up well. This week high-grade NPI prices were in the doldrums, which narrowed the economic advantage of stainless steel scrap over it, but the scrap still maintained a significant edge, effectively supporting scrap prices and leaving little room for a steep decline. However, the market is currently in the traditional stainless steel consumption off-season, with downstream end-use demand staying weak. Coupled with the not-yet-resolved issue of tight tax invoices in the industry, these two bearish factors continue to suppress market trading activity. Overall demand growth for stainless steel scrap was limited, and the upside momentum in the market was capped. In summary, ...

This week, 304 stainless steel scrap off-cuts in east China edged up, with a quotation range of 10,200-10,300 yuan/mt; in Foshan, prices also rose in tandem, in a range of 10,100-10,400 yuan/mt. From a raw material cost perspective, producing stainless steel entirely from stainless steel scrap currently costs approximately 14,351.25 yuan/mt, while using only high-grade NPI costs up to 14,947.08 yuan/mt, maintaining a significant cost spread between the two.

This week, stainless steel scrap prices edged up. SS futures strengthened overall during the week, and the positive sentiment was smoothly transmitted to the spot market, lifting stainless steel product spot prices slightly in tandem. Although steel mills still harbored a desire to bargain down raw material procurement prices, and high-grade NPI prices, an alternative raw material, remained in the doldrums—meaning overall cost-side support was modest—stainless steel scrap still followed the upward trend of finished product spot prices, edging up in tandem and holding up well overall. The weakness in high-grade NPI prices narrowed the cost advantage of stainless steel scrap relative to it but remained significant, effectively supporting scrap prices and leaving little room for a sharp drop. However, the market is now in the traditional consumption off-season for stainless steel, downstream end-use demand is weak, and unresolved tightness in industry tax invoices continues to weigh on trading activity, constraining overall demand growth for stainless steel scrap and limiting upside momentum. In summary, short-term stainless steel scrap prices will be supported by cost advantages and consolidate with a firm bias, with relatively manageable upside and downside room.

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