Home / Metal News / The economic disadvantage of stainless steel scrap persists, increasing the risk of price pullback [SMM Weekly Review of Stainless Steel Scrap Market]

The economic disadvantage of stainless steel scrap persists, increasing the risk of price pullback [SMM Weekly Review of Stainless Steel Scrap Market]

iconAug 1, 2025 16:58
Source:SMM

This week, the price of 304 stainless steel scrap off-cuts in east China remained stable, at 9,600-9,700 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts dropped slightly, to 9,250-9,550 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel produced entirely from stainless steel scrap is approximately 13,417.11 yuan/mt, while the production cost of stainless steel produced entirely from high-grade NPI is approximately 13,104.98 yuan/mt. This week, a steel mill in south China did not update its purchase price for stainless steel scrap.

This week, despite the further strengthening of high-grade NPI prices driven by the inversion at smelters and expectations for production increase at stainless steel mills, the stainless steel futures market fluctuated considerably during the week. In the absence of further macroeconomic news to stimulate the market, its upward momentum has slightly weakened. Although spot prices have remained basically stable, market sentiment has gradually turned cautious and wait-and-see. Affected by this, the price of stainless steel scrap has mainly stabilized with individual adjustments. Despite the narrowing of the economic disadvantage of stainless steel scrap compared to last week amid the strengthening of high-grade NPI prices, it still remains in a relatively obvious state of disadvantage. Overall, the driving force of macroeconomic policies on the stainless steel market has weakened, and the economic disadvantage of stainless steel scrap persists. Recently, traders' enthusiasm for shipping goods has increased, and it is expected that the price of stainless steel scrap may show a weakening trend.

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

For queries, please contact Lemon Zhao at lemonzhao@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn