Cost Advantages Fail to Offset Weak Sentiment, Stainless Steel Scrap Prices Remain Under Pressure and Pull Back [SMM Stainless Steel Scrap Market Weekly Review]

Published: Sep 11, 2026 16:06

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[SMM Stainless Steel Scrap Weekly Review] Cost Advantages Fail to Offset Bearish Sentiment, Stainless Steel Scrap Prices Remain Under Pressure and Pull Back This week, 304 stainless steel scrap off-cuts prices in east China pulled back, with a quotation range of 9,900-10,000 yuan/mt; 304 stainless steel scrap off-cuts prices in the Foshan area fell in tandem, with a price range of 9,900-10,200 yuan/mt. From the perspective of raw material production costs, the current cost of producing stainless steel entirely from stainless steel scrap is approximately 14,004.41 yuan/mt, while the production cost using only high-grade NPI reaches 14,493.57 yuan/mt. The price spread between the two remains stable, and stainless steel scrap continues to hold a clear economic substitution advantage over high-grade NPI. This week, stainless steel scrap prices trended lower overall. During the week, SS futures continued to slide and hit bottom, with bearish sentiment spreading in the market and transmitting to the spot end, dragging spot prices of stainless steel products down in tandem; substitute raw material high-grade NPI prices also remained in the doldrums, forming a linked downward pattern across futures and raw materials, with overall market trading sentiment leaning bearish. Although stainless steel scrap maintained favorable substitution economics supported by the cost spread, industry fundamentals continued to weaken, making it difficult to support firm price performance. The expected recovery of the "September peak season" for stainless steel products failed to materialize, end-user rigid demand remained sluggish, and steel mills remained in a state of losses over the long term, with prominent production profit pressure. In September, steel mill production schedules are expected to pull back somewhat, and raw material purchase willingness continued to cool. Overall, the inherent cost substitution advantage of stainless steel scrap is difficult to offset the current multiple bearish pressures. Peak season demand fell short of expectations, leading to weak destocking of finished products...

This week, 304 stainless steel scrap off-cuts prices in east China pulled back, with quotations ranging from 9,900 to 10,000 yuan/mt; in Foshan, 304 stainless steel scrap off-cuts prices fell in tandem, with a price range of 9,900-10,200 yuan/mt. From a raw material cost perspective, the production cost of stainless steel using only stainless steel scrap is approximately 14,004.41 yuan/mt, while the cost using only high-grade NPI reaches 14,493.57 yuan/mt. The price spread between the two remains stable, and stainless steel scrap continues to hold a clear economic substitution advantage over high-grade NPI.

This week, stainless steel scrap prices trended lower overall. During the week, SS futures continued to slide and hit bottom, with bearish sentiment spreading to the spot market and dragging down spot prices of finished stainless steel. The substitute raw material, high-grade NPI, also remained in the doldrums, creating a synchronized downward pattern across futures, spot, and raw materials, with overall market trading sentiment leaning bearish. Although stainless steel scrap maintained favorable substitution economics due to the cost spread, weakening industry fundamentals made it difficult to support firm prices. The expected September peak season recovery for finished stainless steel failed to materialize, end-user demand remained sluggish, and steel mills continued to face losses, with significant production profitability pressure. September production schedules at steel mills are expected to pull back, and raw material purchase willingness continued to cool.

Overall, the inherent cost substitution advantage of stainless steel scrap is insufficient to offset the current multiple bearish pressures. Peak season demand falling short of expectations led to weak destocking of finished products, and reduced steel mill production schedules further weakened raw material demand. The overall market procurement pace remained cautious, and stainless steel scrap transactions continued to weaken. Under the combined bearish resonance of weak futures, spot prices under pressure, steel mill losses pushing for lower prices, and shrinking raw material demand, bottom support for stainless steel scrap continued to erode. In summary, the short-term market weakness is difficult to reverse, and stainless steel scrap prices are expected to remain in the doldrums.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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