Off-Season Bearish Factors Dragged Stainless Steel Scrap Prices to Pull Back Slightly, Cost Advantages Held the Market Floor [SMM Stainless Steel Scrap Market Weekly Review]

Published: May 29, 2026 16:52 (GMT+8)

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[SMM Stainless Steel Scrap Market Weekly Review] Off-Season Bearish Factors Dragged Stainless Steel Scrap Prices to Pull Back Slightly, Cost Advantages Held Up the Market Floor This week, prices of 304 stainless steel off-cuts in east China pulled back slightly, with a quotation range of 10,300-10,400 yuan/mt. Prices of the same-grade stainless steel off-cuts in Foshan remained stable, with a price range of 10,150-10,450 yuan/mt. From the perspective of raw material production costs, the cost of producing stainless steel entirely from stainless steel scrap was approximately 14,459.87 yuan/mt, while the cost of production entirely using high-grade NPI reached 15,149.69 yuan/mt. The price spread between the two remained considerable. Stainless steel scrap prices pulled back slightly this week. Although SS futures saw a slight upward probe during the week, the upward momentum from futures was relatively weak and difficult to transmit to the spot market. Coupled with the market gradually approaching the traditional consumption off-season for stainless steel, downstream end-user purchase sentiment turned cautious overall, and spot prices of finished stainless steel products remained largely stable, lacking upward momentum. Meanwhile, the pace of price increases for the alternative raw material high-grade NPI also slowed down simultaneously, with weak market transaction performance and insufficient overall support from the raw material side. Additionally, the long-standing industry issue of tight tax invoices remained unresolved, and news of production cuts and maintenance at individual stainless steel mills in June emerged. Market expectations for raw material demand weakened, and multiple bearish factors collectively dragged stainless steel scrap prices to pull back slightly during the week. Despite the slight weakening of scrap prices this week, stainless steel scrap still maintained favorable cost advantages compared to high-grade NPI. The significant production cost spread continued to play a substitution role, providing...

This week, prices of 304 stainless steel scrap off-cuts in east China pulled back slightly, with a quotation range of 10,300-10,400 yuan/mt; prices of the same-specification stainless steel scrap off-cuts in Foshan remained stable, with a price range of 10,150-10,450 yuan/mt. From a raw material production cost analysis, the cost of producing stainless steel entirely from stainless steel scrap was approximately 14,459.87 yuan/mt, while the production cost using entirely high-grade NPI reached 15,149.69 yuan/mt, with the price spread between the two remaining considerable.

Stainless steel scrap prices pulled back slightly this week. During the week, although SS futures saw a slight upward probe, the upward momentum from futures was relatively weak and difficult to transmit to the spot side. Combined with the market gradually approaching the traditional consumption off-season for stainless steel, downstream end-user purchase sentiment turned cautious overall, and spot prices of stainless steel finished products remained stable, lacking upward momentum. Meanwhile, the price increase pace of alternative raw material high-grade NPI also slowed down simultaneously, with weak market transaction performance and insufficient overall linkage support from the raw material side. Additionally, the long-standing industry issue of tight tax invoices remained unresolved, and news of production cuts and maintenance at individual stainless steel mills in June emerged, weakening market expectations for raw material demand. Multiple bearish factors collectively dragged down stainless steel scrap prices, which pulled back slightly during the week. Even though scrap prices weakened slightly this week, stainless steel scrap still maintained favorable economic advantages compared to high-grade NPI, with the significant production cost spread continuing to play a substitution role, providing solid bottom support for stainless steel scrap prices and preventing a deep decline. Overall, the stainless steel scrap market this week presented a pattern of slight pullback characterized by "slight recovery in futures, weak spot demand, and cost advantages underpinning prices." Weak off-season demand, continued tax invoice constraints, and steel mill maintenance rumors collectively suppressed market performance, though the stable economic price spread effectively defended the price floor. In the short term, affected by ongoing tax invoice constraints and expectations of weakening demand during the traditional consumption off-season, stainless steel scrap prices are expected to remain largely stable going forward.

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