South Korea: Imported stainless steel prices face downside pressure amid weak demand

• High-cost July arrivals likely to limit sharp price declines
• Imported 304 CR prices may find support at KRW 3.4-3.5 million/t

SteelDaily: South Korea’s stainless steel distribution market is grappling with weak demand despite elevated import costs, prompting market participants to assess the potential downside for imported 304-grade cold rolled (CR) stainless steel prices during the third quarter.

Imported 304 CR prices in South Korea have risen sharply this year, increasing from around KRW 2.95 million/t in January to KRW 3.55 million/t in June. However, sluggish downstream demand has limited further price gains despite higher overseas offer prices and a relatively strong US dollar against the Korean won.

Market sources estimate that the first support level for imported 304 CR stainless steel currently stands at KRW 3.4-3.45 million/t. In a worst-case scenario involving weaker demand, lower Asian export offers, and a stronger Korean won, prices could temporarily decline to KRW 3.3-3.35 million/t.

The recent correction in nickel prices has added pressure to market sentiment. LME nickel, which briefly traded above $19,000/t in early June, has since retreated to the $17,000/t range. At the same time, Asian transaction prices for 304 CR stainless steel have declined by $100-130/t over the past month to $2,100-2,180/t CIF amid subdued demand.

Despite the softer market environment, import costs remain elevated. June import offers for 304 CR stainless steel averaged around $2,250/t, translating to landed costs of approximately KRW 3.37-3.45 million/t. July shipment offers have increased further to $2,350-2,400/t, resulting in estimated import costs of KRW 3.6-3.68 million/t.

Market participants note that the higher-cost July arrivals create a cost-price inversion, making prolonged low-priced sales unsustainable for importers. As a result, while short-term price corrections remain possible, imported 304 CR stainless steel prices are expected to find support in the KRW 3.45-3.5 million/t range during Q3 2026.

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