China’s stainless steel raw materials markets remain under pressure on weak downstream demand

• Weak stainless demand keeps raw material markets soft
• Scrap trading muted due to high mill inventories

SteelDaily: China’s stainless steel raw materials markets remained largely subdued in mid-December, with molybdenum prices continuing to face downward pressure on weak downstream demand and cautious procurement by stainless steel producers. Market participants noted that buying interest from stainless steel mills stayed limited as finished steel demand remained sluggish, prompting a wait-and-watch approach across the value chain.

Molybdenum prices soften on subdued consumption

The molybdenum market continued to soften, with prices facing pressure from subdued demand in stainless steel and special steel applications. Buyers remained hesitant amid falling alloy consumption and cautious procurement strategies by mills. Although supply remained relatively tight, declining stainless demand and weak export interest kept market activity muted, limiting scope for price recovery in the near term.

Ferro chrome prices stable but upside limited

China’s ferro chrome market remained largely stable, supported by steady smelter operations and disciplined supply. Demand from stainless steel mills stayed moderate, preventing sharp price declines, though buying interest remained cautious amid weak finished steel offtake. Market participants noted that while near-term supply remains balanced, expectations of production restarts in South Africa and planned capacity additions in China in early 2026 could limit any meaningful upside in ferro chrome prices going forward.

Stainless steel scrap trading muted 

China’s stainless steel scrap market remained quiet, with mills relying more on primary feedstocks and maintaining comfortable inventory levels. Spot trading activity stayed thin, as weak stainless steel demand discouraged fresh scrap bookings. Traders reported slow movement across major grades, particularly in the 300-series, while price stability was driven more by limited buying rather than improved demand fundamentals.

Outlook

Looking ahead, the outlook for China’s stainless steel raw material market remains weak, with limited upside expected in the short term. Persistent demand softness, comfortable inventory levels, and conservative mill procurement strategies are likely to keep price movements range-bound until clearer signals of demand recovery emerge.

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