Futures and spot prices weaken in tandem, demand side under pressure, stainless steel scrap prices pull back [SMM Stainless Steel Scrap Market Weekly Review]

Published: Oct 16, 2026 15:58 (GMT+8)

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[SMM Stainless Steel Scrap Market Weekly Review] Futures and Spot Prices Weaken Together, Demand Side Under Pressure, Stainless Steel Scrap Prices Pull Back This week, 304 stainless steel scrap off-cuts prices in east China fell, with a quotation range of 9,250-9,350 yuan/mt; prices in the Foshan area pulled back in tandem, with a price range of 9,650-9,950 yuan/mt. From a raw material cost perspective, the cost of producing stainless steel entirely from stainless steel scrap is approximately 13,193.42 yuan/mt, while the cost using only high-grade NPI reaches 13,918.59 yuan/mt. Stainless steel scrap still holds a notable economic substitution advantage over high-grade NPI, and its cost support role remains intact. This week, stainless steel scrap prices declined. Under the influence of macro headwinds during the week, SS futures fell notably, and with stainless steel mills lowering guidance prices for finished products, stainless steel spot prices followed suit, directly pressuring stainless steel scrap prices. On the raw material side, high-grade NPI and high-carbon ferrochrome prices also pulled back, and mainstream stainless steel mills lowered their purchase prices for stainless steel scrap. Stainless steel scrap could not decouple from the broader trend and fell in tandem. Although the economic advantage of stainless steel scrap over high-grade NPI widened further after the price decline this week, the tax invoice issue remains unresolved, and with the year-end approaching, downstream steel mills have become increasingly cautious in purchasing. Meanwhile, planned stainless steel production continued to decline, weakening demand for stainless steel scrap, making it difficult for prices to reverse their weak trend. Overall, weakening futures, lower steel mill purchase prices, and shrinking demand formed a resonance that dominated this week...

This week, 304 stainless steel scrap off-cuts prices in east China fell, with a quotation range of 9,250-9,350 yuan/mt; Foshan 304 stainless steel scrap off-cuts prices pulled back in tandem, with a price range of 9,650-9,950 yuan/mt. From a raw material cost perspective, the production cost of stainless steel using only stainless steel scrap is approximately 13,193.42 yuan/mt, while the cost using only high-grade NPI reaches 13,918.59 yuan/mt. Stainless steel scrap still holds a notable economic substitution advantage over high-grade NPI, and its cost support role remains intact.

This week, stainless steel scrap prices declined. Under macro headwinds during the week, SS futures fell notably, and with steel mills lowering guidance prices for finished products, stainless steel spot prices followed lower, directly pressuring stainless steel scrap prices. On the raw material side, high-grade NPI and high-carbon ferrochrome prices also pulled back, and mainstream steel mills lowered purchase prices for stainless steel scrap. Stainless steel scrap could not buck the trend and fell in tandem. Although the economic advantage of stainless steel scrap over high-grade NPI widened further after this week's price decline, the tax invoice issue remains unresolved, and downstream steel mills became more cautious in purchasing as year-end approaches. Meanwhile, stainless steel planned production continued to decline, weakening demand for stainless steel scrap, making it difficult for prices to shake off the weak pattern.

Overall, weaker futures, lower steel mill purchase prices, and shrinking demand combined to drive stainless steel scrap prices lower this week. Looking ahead, the substitution economics of stainless steel scrap over high-grade NPI are still widening, providing some bottom support for prices. However, the unresolved tax invoice issue, cautious year-end purchasing by steel mills, and continued declines in production schedules make it difficult for demand to improve. In summary, under weak supply-demand conditions, stainless steel scrap lacks upward momentum, but cost support and substitution advantages also limit further downside. Stainless steel scrap prices are expected to continue consolidating on a subdued note in the short 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.

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