- Nickel tightness, alloy inflation drive hikes
- Global liquidity and trade shifts support prices
SteelDaily: Taiwan’s leading stainless steel producer, Yieh United Steel Corp. (Yusco), has announced a sharp increase in its February stainless steel prices, marking the third consecutive monthly hike amid sustained global cost pressure. The move reflects rising raw material prices, tightening upstream supply, and improving global macro sentiment.
Yusco raised prices of 304 hot-rolled and cold-rolled coils by TWD $7,500/t ($238/t), the steepest increase among its product basket. Prices for 316-grade stainless steel were lifted by TWD $3,500/t ($111/t), while 430-grade products were raised by TWD $1,000/t ($32/t). Market participants noted that mills are increasingly passing through higher alloy costs as margins come under pressure.
The latest hike is underpinned by a broad-based rise in raw material prices. Nickel markets remain particularly tight, following Indonesia’s decision to reduce its 2026 nickel ore mining quota (RKAB) by 34% compared with 2025, sharply constraining upstream supply. This has pushed up prices of slabs and 304 black coils exported from Indonesian mills, while nickel pig iron and LME nickel prices also strengthened, with January averages reportedly up around 20% m-o-m.
Macro factors have further supported the pricing environment. The International Monetary Fund recently revised its global economic growth forecast for 2026 upward to 3.3%, citing strong momentum from the AI sector. In addition, US Federal Reserve rate cuts and China’s accommodative monetary policy have improved global liquidity, lifting investor sentiment and supporting commodity prices.
On the trade front, China’s steel export licensing curbs have restricted shipments, diverting orders toward Taiwan and other regional suppliers. Lower US tariffs on Taiwanese steel have also improved competitiveness against peers in Japan, South Korea, and the EU.
Outlook
Stainless steel prices in Asia are expected to remain supported in the near term, led by sustained alloy cost pressure and tight nickel supply. However, any further upside may hinge on downstream demand absorption amid elevated prices.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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