Stainless Steel Scrap Strengthened After the Holiday, Underpinned by Rigid Demand and Cost Advantages [SMM Stainless Steel Scrap Market Weekly Review]

Published: May 8, 2026 15:09

Save

This week, prices of 304 stainless steel scrap off-cuts in east China rose, with the quotation range at 10,800-10,900 yuan/mt; the same-specification stainless steel scrap off-cuts in Foshan also strengthened, with the price range at 10,450-10,750 yuan/mt. From the perspective of raw material production costs, the current cost of producing stainless steel entirely from stainless steel scrap was approximately 15,062.94 yuan/mt, while the cost of production entirely using high-grade NPI reached 15,261.92 yuan/mt.

Stainless steel scrap prices strengthened further this week. After the Labour Day holiday, SS futures surged sharply, stimulated by news of easing geopolitical tensions in the Middle East. Although futures subsequently pulled back, spot stainless steel finished products remained firm after the initial spike, highlighting spot resilience. The alternative raw material high-grade NPI also rose in tandem, driving raw material prices higher collectively, with stainless steel scrap prices rising in sync and continuing to hold up well. The core factors supporting further strengthening of stainless steel scrap prices were clearly visible: steel mills currently enjoyed healthy smelting margins with relatively high production enthusiasm, production schedules stayed high, and rigid raw material demand provided solid support. Meanwhile, although the cost advantage of stainless steel scrap over high-grade NPI narrowed somewhat, it still maintained a significant edge, continuously boosting steel mills' purchase willingness. At the industry level, while the issue of tight tax invoices persisted, imposing certain constraints on traders' payment collection, it did not dampen market sentiment, and bullish confidence in the industry remained relatively strong. Overall, the stainless steel scrap market this week exhibited a firm pattern characterized by "futures fluctuations, firm spot prices, and demand support," with various positive factors jointly driving market trends. Although the tax invoice issue existed, it did not significantly constrain the strong price momentum, and stainless steel scrap prices were expected to hold up well in the near 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.

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

12 hours ago

6.8 SMM Global Steel Daily Report

SMM News Flash: [Steel Billet] Today, billet export offers weakened, with offers at USD 470–474/t. According to feedback from several traders, the North African market is facing pressure from rising port and freight costs, but the overall impact remains limited. Market inquiries were relatively active, mainly from customers in South Asia and the Middle East. Recently, low-priced export billet transactions were concluded. [Thailand] Currently, the DDP price for cold-rolled substrate galvanizing in Thailand is 28.75 THB/kg. According to SMM’s latest survey, affected by weak procurement demand during the off-season, orders at local processing centers have recently shown a weakening trend, with actual transaction performance remaining weak. It is expected that prices will remain under pressure in the near term, and significant improvement in short-term trading will be difficult to see, pending the release of updated price adjustments by steel mills.

12 hours ago

【SMM Steel】Jubilee restores Roan concentrator operations in Zambia

【SMM Steel】Jubilee Metals Group has resumed full capacity at its Roan concentrator in Ndola Zambia targeting monthly run-of-mine throughput of 30000 tonnes following scheduled annual maintenance. Upgrades include an expanded copper oxide flotation circuit designed to boost recovery efficiency by 5% offsetting higher transport costs. Jubilee also commissioned a new fine copper concentrate dewatering facility to manage a stream representing about 25% of Roan's feedstock copper with material transported to its Sable refinery in Kabwe. The company is also evaluating an additional DMS circuit to potentially expand throughput.

12 hours ago

【SMM Steel】Turkey's Kardemir successfully commissions advanced KOCKS RSB line

【SMM Steel】Turkish steelmaker Kardemir has achieved initial production on a new-generation KOCKS Reducing & Sizing Block line at its bar and coil rolling mill. The equipment integrated with process optimization and real-time monitoring met targeted tolerance and ovality values. The modernization enables high-speed production of high-value steel grades including SBQ bars 20-105 mm and thick coils 20-56 mm. The investment serves automotive railway machinery and construction industries aiming to expand high-value product capacity and strengthen Kardemir's export competitiveness.

12 hours ago