Futures strength drives stainless steel scrap to edge up, while weak off-season demand caps room for price increases[SMM Stainless Steel Scrap Market Weekly Review]

Published: Jul 24, 2026 16:34

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[SMM Stainless Steel Scrap Market Weekly Review] SS Futures Strength Drives Slight Uptick in Stainless Steel Scrap, Off-Season Demand Weakness Caps Price Gains This week, prices for 304 stainless steel scrap off-cuts in east China edged up, with quotations ranging between 10,400-10,500 yuan/mt. Prices in Foshan rose in tandem, with a price range of 10,300-10,600 yuan/mt. An analysis of raw material production costs shows that the cost of producing stainless steel entirely from stainless steel scrap is approximately 14,607.48 yuan/mt, while the cost using high-grade NPI reaches 14,962.08 yuan/mt, with a cost spread persisting between the two. Stainless steel scrap prices edged up this week. SS futures strengthened overall during the week, and the positive sentiment from the futures side was smoothly transmitted to the spot market, driving a slight concurrent rise in spot prices for finished stainless steel. However, stainless steel mills continued to push for lower prices for high-grade NPI, and amid the tug-of-war between upstream and downstream, high-grade NPI prices held steady for the time being. Overall momentum from the raw material side remained weak, but stainless steel scrap rose in tandem with the strengthening pace of finished product spot cargoes, holding up well overall. With high-grade NPI prices remaining stable this week, the economic advantage of stainless steel scrap narrowed notably, and the cost substitution benefit weakened. In summary, futures provided support for market prices, but off-season fundamentals continued to cap price upside. The market is currently in the traditional consumption off-season for stainless steel, downstream end-use demand remains sluggish, overall industry production pulled back, and the rigid demand for stainless steel scrap weakened accordingly. The purchasing sentiment among steel mills turned cautious, and raw material procurement overall this week...

This week, prices of 304 stainless steel scrap off-cuts in east China gained, with a quotation range of 10,400-10,500 yuan/mt; in Foshan, prices of 304 stainless steel scrap off-cuts also edged up, with a price range of 10,300-10,600 yuan/mt. Raw material cost analysis shows that the current cost of producing stainless steel entirely from stainless steel scrap is approximately 14,607.48 yuan/mt, while the cost using high-grade NPI reaches 14,962.08 yuan/mt, leaving a certain cost difference between the two.

This week, stainless steel scrap prices edged up. During the week, SS futures trended higher overall, and the bullish sentiment smoothly transmitted to the spot market, driving spot prices of stainless steel products slightly higher in tandem. However, stainless steel mills continued to push for lower prices on high-grade NPI. Amid the tug-of-war between upstream and downstream, high-grade NPI prices remained stable for the time being, and the raw material side showed weak linkage momentum overall. Yet, stainless steel scrap followed the strength of product spot prices and rose in tandem, holding up well overall. This week, high-grade NPI prices were stable, which noticeably narrowed the economic advantage of stainless steel scrap over it, weakening the cost substitution dividend. Overall, futures support spot prices, but off-season fundamentals continue to cap market gains. The market is currently in the traditional consumption off-season for stainless steel, with persistently weak end-use demand downstream. Overall industry output has pulled back, and rigid demand for stainless steel scrap has similarly weakened. Mills' purchasing sentiment turned cautious, and raw material procurement was generally weak this week, with the market dominated by rigid demand transactions and lacking incremental restocking support. Under the dual impact of weak off-season demand and narrowing economic advantage, stainless steel scrap lacks upward momentum, and further price increases face notable pressure. In summary, in the near term, stainless steel scrap prices will maintain a steady consolidation supported by the resilience in futures, with limited upside room.

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