- Import cost pressure builds across Asian markets
- Nickel rally continues to support cost-side pressure
SteelDaily: Stainless steel export offers from Taiwan to South Korea have surged sharply, reinforcing bullish sentiment across the Asian market. According to market sources, major Taiwanese mills have raised cold-rolled stainless steel (CRC) offers to Korea by over $150/t, with latest indications ranging between $2,020-2,050/t, pushing benchmarks firmly above the $2,000/t mark.
While some Korean buyers are attempting negotiations citing cost pressures, market participants noted that CRC prices above $2,000/t are gradually being accepted amid rising upstream costs.
Hot-rolled stainless steel (HRC) prices have also shown signs of recovery. Offers to Korea, which had earlier dipped to around $1,780/t, have rebounded to nearly $1,850/t. Although $1,900/t offers are yet to be widely concluded, sources indicated that a sustained nickel uptrend could trigger further increases.
The price upcycle is expected to extend across Asia. Industry participants anticipate higher offers from major Chinese producers, including TISCO, after observing Taiwan’s recent hikes. Indonesian mills have already been raising prices for both Asian and European markets, strengthening expectations of higher offers into Korea.
The broader Asian stainless steel market-led by Indonesia, Tsingshan, and Taiwan-has entered an upward phase, particularly for CRC, while HRC prices are increasingly viewed as having bottomed out. In Korea, anti-dumping measures continue to keep domestic prices well above the regional average.
In India and other import-reliant markets, import cost pressures are building. Traders noted that, considering exchange rate movements and offer trends, further increases appear inevitable. For 304 CRC, securing material below $1,950/t—the first-quarter low-has become increasingly difficult.
Market participants also flagged risks of inventory disruption, especially for buyers who failed to lock in volumes earlier, as Lunar New Year-related delays in February could tighten near-term supply. Additionally, rising overseas offers for 400-series material are expected to further elevate overall import costs.
Separately, a fire incident at the BA line of Tangeng’s Taiwan plant in late December had limited impact on production. According to sources, the company swiftly adjusted operations by prioritising BA output and switching certain volumes to the 2B line, with most existing orders now being fulfilled.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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