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

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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.

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