Futures Bottom Out and Rebound to Support Market, Longs and Shorts in Equilibrium as Scrap Holds Steady in Narrow Range [SMM Stainless Steel Scrap Market Weekly Review]

Published: Jun 12, 2026 15:30

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[SMM Stainless Steel Scrap Market Weekly Review] Futures Bottom Out to Support Market, Bull-Bear Balance Keeps Scrap Narrowly Stable This week, prices of 304-grade stainless steel scrap off-cuts in east China remained stable, with a quotation range of 10,400-10,500 yuan/mt; the same specification of stainless steel scrap off-cuts in Foshan also remained stable, with a price range of 10,300-10,600 yuan/mt. From a raw material production cost analysis, the cost of producing stainless steel entirely using stainless steel scrap is approximately 14,580.48 yuan/mt, while the cost of using high-grade NPI reaches 15,113.2 yuan/mt, with a considerable cost spread still maintained between the two. Stainless steel scrap prices remained generally stable this week. The substitute raw material high-grade NPI was affected by expectations of production cuts at stainless steel mills in the off-season, with prices continuing to pull back; the overall sentiment on the raw material side was weak, making it difficult to drive an uptick in stainless steel scrap. However, SS futures bottomed out during the week, effectively repairing market pessimism; meanwhile, spot prices of stainless steel products only edged down, highlighting the resilience of the spot market. Under the hedging effect of multiple factors, stainless steel scrap prices remained firm. Overall, the market has entered the traditional consumption off-season for stainless steel. Expectations for production schedules at stainless steel mills have been continuously revised downward, smelting margins at steel mills have narrowed compared with earlier periods. Additionally, macro market uncertainty remains relatively high, and bearish risks are gradually accumulating. It is expected that stainless steel scrap prices may face some pullback risks going forward.……

This week, prices of 304 stainless steel scrap off-cuts in east China remained stable, with a quotation range of 10,400-10,500 yuan/mt; those of the same specification in Foshan also held steady, with a price range of 10,300-10,600 yuan/mt. From the perspective of raw material production costs, the cost of producing stainless steel using entirely stainless steel scrap as raw material is approximately 14,580.48 yuan/mt, while that using entirely high-grade NPI reaches 15,113.2 yuan/mt, with a considerable cost difference remaining between the two.

This week, stainless steel scrap prices remained stable overall. During the week, high-grade NPI, as an alternative raw material, was affected by expectations of production cuts at stainless steel mills during the off-season, leading to a continued price pullback. The overall raw material market atmosphere was weak, making it difficult to drive up stainless steel scrap. However, SS futures bottomed out and rebounded during the week, effectively repairing market pessimism. Meanwhile, spot prices of stainless steel finished products only edged down, highlighting the resilience of the spot market. Under the offsetting effects of multiple factors, stainless steel scrap prices maintained a firm trend. Overall, the market has now entered the traditional consumption off-season for stainless steel, with expectations for stainless steel mill production schedules continuing to be revised downward. Steel mill smelting margins have narrowed compared to the earlier period, coupled with still relatively strong macroeconomic uncertainty. As bearish risks gradually accumulate, it is expected that stainless steel scrap prices will face certain pullback risks in the subsequent period.

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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