Futures and Raw Material Linkage Boosts Stainless Steel Scrap Market, Off-Season Pressure Persists, Limiting Gains [SMM Stainless Steel Scrap Weekly Review]

Published: Jun 18, 2026 16:39

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[SMM Stainless Steel Scrap Market Weekly Review] Futures and Raw Material Linkage Boost Stainless Steel Scrap Market, Off-Season Pressure Limits Gains This week, the price of 304 stainless steel scrap off-cuts in east China edged up, with a quotation range of 10,500-10,600 yuan/mt; in Foshan, the price of the same specification stainless steel scrap also edged up, with a price range of 10,400-10,700 yuan/mt. From a raw material production cost analysis, the cost of producing stainless steel using only stainless steel scrap was approximately 14,701.1 yuan/mt, while the cost using only high-grade NPI reached 15,168.67 yuan/mt, maintaining a considerable cost price spread. Stainless steel scrap prices edged up this week. Recovering macro sentiment during the week drove SS futures higher, with the positive momentum in futures transmitting to the spot market and driving spot prices for stainless steel products higher. Meanwhile, purchasing activity in the high-grade NPI market picked up, lifting raw material prices. Futures, steel products, and alternative raw materials formed a linked boost, pushing stainless steel scrap prices higher this week. Although the rise in high-grade NPI prices this week narrowed the economic cost advantages of stainlessless steel scrap, the overall cost advantages remained prominent, continuing to provide bottom support for stainless steel scrap prices and ensuring the market held up well. Overall, short-term positive factors drove scrap prices moderately higher, but bearish constraints remain in the market. The market has officially entered the traditional consumption off-season for stainless steel, with frequent news of production cuts and maintenance at stainless steel mills within the industry. Market expectations for stainless steel scrap demand are gradually weakening. Meanwhile, issues such as tight industry tax invoices...

This week, 304 stainless steel scrap off-cuts prices in east China edged up, with a quotation range of 10,500–10,600 yuan/mt; in Foshan, stainless steel scrap of the same specification also edged up, with a price range of 10,400–10,700 yuan/mt. From a raw material production cost analysis, the current cost of producing stainless steel entirely from stainless steel scrap stands at approximately 14,701.1 yuan/mt, while production using entirely high-grade NPI reaches 15,168.67 yuan/mt, with the two still maintaining a significant cost price spread.

This week, stainless steel scrap prices edged up. During the week, improving macro sentiment boosted SS futures, with the rally in futures transmitting to the spot market, driving spot prices of stainless steel products edge up; at the same time, purchase transactions in the high-grade NPI market recovered somewhat, with raw material prices rising in tandem. Futures, steel products, and alternative raw materials formed a linked supportive pattern, pushing stainless steel scrap prices to strengthen and rise this week. Although the rise in high-grade NPI prices this week narrowed the economic advantage of stainless steel scrap relative to it, the overall cost advantage remains quite prominent, continuously providing bottom support for stainless steel scrap prices and ensuring the market holds up well.

Overall, short-term positives drove a slight upward move in scrap, but bearish constraints still persist in the market. The market has now officially entered the traditional consumption off-season for stainless steel, with frequent news of production cuts and maintenance at stainless steel mills across the industry, and market expectations for stainless steel scrap demand are gradually weakening; at the same time, the issue of tight tax invoices in the industry remains not fully resolved, continuing to constrain market trading activity. Under the dual pressure of weakening off-season demand and unresolved industry pain points, future stainless steel scrap prices will struggle to rise, with an overall risk of a pullback.

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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