Nickel Ore Expectations Ferment and Drive SS Futures Higher, Stainless Steel Scrap Prices Rise Steadily [SMM Stainless Steel Scrap Market Weekly Review]

Published: Apr 17, 2026 17:02

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This week, prices of 304 stainless steel scrap off-cuts in east China rose, quoted at 10,300-10,400 yuan/mt; off-cuts of the same specification in Foshan strengthened, with a price range of 9,950-10,250 yuan/mt. Raw material production cost side, the cost of producing stainless steel entirely from stainless steel scrap was approximately 14,459.87 yuan/mt, while the cost using entirely high-grade NPI was 14,766.96 yuan/mt.

Stainless steel scrap prices strengthened and rose this week. The news of the revision to the nickel ore HMP calculation formula continued to ferment this week, pushing up nickel ore cost expectations, which directly drove SS futures to surge significantly, subsequently transmitting to the spot market, where stainless steel finished product prices also rose sharply in tandem, laying a solid foundation for the rise in stainless steel scrap prices. Alternative furnace charge also strengthened in tandem, as high-grade NPI prices, influenced by expectations of rising nickel ore costs, also edged up this week, forming a linkage effect with stainless steel scrap. The core factors supporting the strengthening of stainless steel scrap prices were prominent. Although the cost advantage of stainless steel scrap over high-grade NPI narrowed somewhat after this week's price increase, a significant cost advantage was still maintained, and this core competitiveness supported strong purchase willingness from steel mills for stainless steel scrap. Meanwhile, stimulated by the rising price trend, market trading activity picked up, further driving stainless steel scrap prices to rise. However, it should be noted that certain constraining factors still existed in the market. Some steel mills still delayed payments during procurement, which to some extent affected the market trading pace but did not alter the overall price strengthening trend. Overall, the stainless steel scrap market this week exhibited a strengthening pattern of "futures-driven, raw material linkage, and demand-supported," with supportive factors dominating market trends. Stainless steel scrap prices are expected to stabilize at highs in the short term.

Supporting and constraining factors counterbalanced each other, making it difficult to drive any significant price change. Stainless steel scrap prices are expected to remain largely stable in the short term.

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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