After nearly two months, a steel mill in South China once again announced the purchase price of stainless steel scrap, with the economic disadvantage still persisting [SMM Weekly Review of Stainless Steel Scrap Market]

Published: Aug 8, 2025 16:13

Save

This week, the prices of 304 stainless steel scrap off-cuts in east China rose to 9,750-9,850 yuan/mt, while those in Foshan increased to 9,400-9,700 yuan/mt. Currently, based on raw material calculations, the production cost of stainless steel made entirely from stainless steel scrap is approximately 13,594.74 yuan/mt, whereas the cost for stainless steel produced entirely from high-grade NPI is around 13,156.96 yuan/mt. This week, a steel mill in south China raised its tender price for stainless steel scrap procurement. The procurement price for 304 stainless steel melt, excluding tax, was set at 9,150 yuan/mt, an increase of 180 yuan/mt from the previous round. The procurement price for 316 stainless steel melt, excluding tax, was set at 18,025 yuan/mt, an increase of 635 yuan/mt from the previous round.
This week, influenced by the SS futures, the prices of finished stainless steel products continued to climb, with particularly active market quotes for high-grade NPI. By the end of August, the on-board price of high-grade NPI from Indonesia quoted by some traders had risen to 930-940 yuan/mtu, and the price of stainless steel scrap also increased simultaneously. After nearly two months, a large stainless steel mill in south China once again raised its procurement price for stainless steel scrap by 180 yuan/mt. Coupled with the expectation of an increase in stainless steel production schedules in August, the demand for stainless steel scrap is expected to rise, and traders' quotes have climbed accordingly. However, despite the simultaneous price increase of high-grade NPI and stainless steel scrap this week, the economic efficiency of stainless steel scrap still shows disadvantages. Currently, the boosting effect of macro tailwinds on the stainless steel market continues, with finished product prices maintaining an upward trend. The improvement in transactions has further enhanced steel mills' willingness to operate, thereby driving an increase in raw material demand. In the short term, the price of stainless steel scrap is expected to continue to remain strong, but due to its relative economic disadvantage compared to high-grade NPI, the increase may be somewhat constrained.

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

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

Related News

Feb 6, 2026 18:30

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

Feb 6, 2026 17:41