- Chinese producers raise ferro chrome bid prices for Feb’26
- Sustained cost pressure to propel stainless steel prices
SteelDaily: Asian stainless steel prices remained firm during the week, driven by a sharp rise in key raw material costs, even as downstream demand across the region stayed weak. Rising prices of ferrochrome and nickel pig iron (NPI) have significantly lifted production costs, forcing mills to push through price increases despite limited buying interest.
In China, major stainless steel producers raised their February ferrochrome bidding prices, underscoring mounting cost pressure. As of 20 January, spot ferrochrome prices (50% Cr basis) were assessed at RMB 8,500-8,800/t ($1,221-1,264/t), up RMB 100-150/t w-o-w. NPI prices also strengthened, with high-grade NPI (10-15%) assessed at RMB 1,020-1,040 per nickel unit on 16 January, marking a rise of RMB 60-65/unit w-o-w.
Domestic stainless steel prices in China moved higher in response. Prices of 304 cold-rolled coils hovered in the range of RMB 14,400-14,700/t, while 430 cold-rolled coils increased by around RMB 50/t to RMB 7,250-7,600/t. However, trading activity remained muted, as end-users struggled to digest the recent sharp price hikes. A Chinese distributor noted that buyers have largely shifted to a wait-and-see approach, delaying purchases until price stability emerges.
In the export market, Chinese stainless steel offers were revised upward, supported by higher domestic prices and a firmer yuan. The yuan strengthened to around 6.96 against the US dollar from 6.99 at the end of last year, raising exporters’ price expectations.
FOB prices of Chinese 304 cold-rolled stainless steel were heard at $2,060-2,120/t, up $30-70/t w-o-w, while 304 hot-rolled coil prices rose by around $45/t to $1,985-2,030/t FOB.
Across wider Asian markets, offer prices increased by $30-50/t, though actual deal prices rose more modestly by $10-20/t amid resistance from buyers. East Asian 304 cold-rolled prices were assessed at $1,980-2,010/t CIF, while hot-rolled prices stood at $1,890-1,900/t CIF.
Outlook
Asian stainless steel prices are expected to remain supported in the near term due to sustained cost pressure from ferrochrome and NPI. However, weak demand and cautious buying sentiment are likely to cap further upside unless consumption improves.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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