Stainless Steel Scrap in Canada: 2025 Market Update

Stainless steel consistently fetches significantly more per kg than regular steel. Understanding why and what drives prices helps sellers time and maximise their returns.

Why stainless pays more

Stainless steel contains chromium (typically 10.5-18%) and often nickel. Nickel is expensive, and its content in 304 and 316 grades drives the premium price. Nickel prices on the LME directly affect stainless scrap buying prices.

Grade 304 vs 316

Grade 304 (the standard kitchen/catering grade) pays the base stainless price. Grade 316 (marine grade, with molybdenum added) pays a premium at yards that test for it. If you have 316, it's worth asking the yard to test — a positive identification can mean 10-20% more.

Current demand

Food processing, pharmaceutical manufacturing, and food service equipment — all major generators of 316 stainless — continue to perform well in Canada. This keeps a steady supply flowing to yards.

The identification challenge

Many sellers unknowingly sell regular steel at stainless prices (or vice versa). Yards use XRF analysers to test accurately. A magnet test is a useful first screen — 304 is weakly magnetic; 316 is typically non-magnetic.

For sellers

If you have stainless steel, separate it from regular steel and bring it clean. Ask the yard to test it with their analyser before accepting a blended price.