Stainless steel product strength and economic advantages support stable stainless steel scrap prices [SMM Stainless Steel Scrap Market Weekly Review]

Published: Sep 30, 2026 16:55 (GMT+8)

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[SMM Stainless Steel Scrap Market Weekly Review] Stainless Steel Finished Products Firm, Economic Advantage Supports, Stainless Steel Scrap Prices Stable This week, 304 stainless steel scrap off-cuts prices in east China remained flat, with a quotation range of 9,700-9,800 yuan/mt; in the Foshan area, 304 stainless steel scrap off-cuts prices also held steady, with a price range of 9,800-10,100 yuan/mt. From the perspective of raw material production costs, the cost of producing stainless steel entirely from stainless steel scrap is currently about 13,736.18 yuan/mt, while the cost of production entirely using high-grade NPI reaches 14,105.37 yuan/mt. Stainless steel scrap still maintains a stable economic substitution advantage over high-grade NPI, and its cost-supporting role continues to take effect. This week, stainless steel scrap prices overall maintained a stable operating pattern. During the week, SHFE nickel futures continued to weaken, but SS futures showed relatively firm performance without a notable follow-up decline, driving stainless steel spot prices to remain stable. On the raw material side, high-grade NPI and high-carbon ferrochrome prices continued to decline, effectively driving the recovery of steel mill smelting profits, continuously easing cost pressure on finished products, and keeping stainless steel scrap prices stable. The market has long faced tight invoice issues, but current stainless steel scrap circulating supply is generally tight, and the sustained economic advantage of scrap substitution effectively offsets some demand-side bearishness, supporting stable scrap prices. Overall, firm futures, weakening raw materials, and tight supply formed multiple supports, offsetting the demand-side bearishness brought by expectations for production cuts. At the current stage, the recovery strength of the September-October peak season is insufficient, overall market demand is weak, and expectations for a pullback in steel mill production schedules in October are rising...

This week, 304 stainless steel scrap off-cuts prices in east China remained flat, with a quotation range of 9,700-9,800 yuan/mt; in Foshan, 304 stainless steel scrap off-cuts prices also held steady, with a price range of 9,800-10,100 yuan/mt. From a raw material cost perspective, the production cost of stainless steel using only stainless steel scrap as raw material is approximately 13,736.18 yuan/mt, while the production cost using only high-grade NPI reaches 14,105.37 yuan/mt. Stainless steel scrap still holds a stable economic substitution advantage over high-grade NPI, and its cost-supporting effect remains in play.

This week, stainless steel scrap prices maintained a stable overall trend. During the week, SHFE nickel futures continued to weaken, but SS futures remained relatively firm and did not show a significant follow-through decline, supporting stainless steel spot prices to hold steady. Raw material prices for high-grade NPI and high-carbon ferrochrome continued to decline, effectively driving a recovery in steel mill smelting margins. Cost pressure on finished products continued to ease, and stainless steel scrap prices remained stable. The market has long faced tight invoice supply issues, but current stainless steel scrap circulation remains relatively tight overall. Combined with the sustained economic substitution advantage of scrap, this effectively offset some bearish demand factors and supported stable scrap prices.

Overall, firm futures, weakening raw materials, and tight supply formed multiple layers of support, offsetting the bearish demand impact from expectations for production cuts. At this stage, the September-October peak season recovery has been insufficient, overall market demand remains weak, and expectations for lower October steel mill production schedules are rising. Industry rigid demand for raw materials is expected to contract, which to some extent caps the upside for scrap. However, the cost-performance advantage of stainless steel scrap continues to stand out, and market supply is not loose, with no significant price-cutting pressure. Downside is also limited. On balance, with bullish and bearish factors in check, stainless steel scrap is unlikely to see a trending rise or fall in the short term, and is expected to continue its stable, sideways consolidation pattern.

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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