Amid Rising Prices of Nickel and Chromium Raw Materials, Stainless Steel Scrap Regains Economic Viability [SMM Stainless Steel Scrap Market Weekly Review]

Published: Sep 5, 2025 18:27

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This week, the price of 304 stainless steel scrap off-cuts in east China held steady at 9,700-9,800 yuan/mt, while in Foshan, the price dropped back slightly to 9,400-9,700 yuan/mt. Currently, the production cost of stainless steel using 100% stainless steel scrap as raw material is approximately 13,535.53 yuan/mt, whereas the cost using 100% high-grade NPI is about 13,557.37 yuan/mt. A steel mill in south China maintained its tender price for stainless steel scrap procurement this week.

During the September-October peak season, stainless steel inventory fell to February levels, easing sales pressure on mills. Mills tentatively raised their listed prices, followed by upward adjustments in spot cargo quotations. With expectations for stainless steel production increase boosting demand for high-grade NPI, both mill procurement prices and retail prices edged up. However, stainless steel scrap prices remained largely stable, unaffected by significant fluctuations. The cost advantage of stainless steel scrap re-emerged amid rising high-grade NPI prices. Overall, September's stainless steel production schedule is expected to increase further, driven by higher nickel and chrome raw material costs, reinforcing the economic appeal of stainless steel scrap. Coupled with persistent bullish market sentiment, stainless steel scrap prices are anticipated to hold up well in the near term.

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