Asian stainless steel markets remain cautious despite Tsingshan-led price hike

• Nickel price surge lifts stainless steel production costs
• Weak demand, global trade concerns keep sellers wary

SteelDaily: Asian stainless steel markets have largely remained on the sidelines, even as Indonesia’s Tsingshan moved to lift export prices, with participants weighing higher raw material costs against weak downstream demand and persistent global trade barriers.

The recent surge in international nickel prices has significantly increased stainless steel production costs, pushing focus onto export pricing strategies of major Asian mills. While Indonesian producers have taken the lead in raising offers, mills in China and Taiwan continue to adopt a cautious stance, citing sluggish demand and uncertain trade conditions.

According to sources, Tsingshan raised export prices for 304-grade stainless steel hot-rolled and cold-rolled products by around $60/t on 16 January. The producer’s 304 hot-rolled black coils for Asia (excluding South Korea) were offered at $1,825-1,870/t FOB, while 304 cold-rolled products were quoted at $1,935-1,980/t FOB.

In comparison, export offers from other major Asian suppliers remain mixed. Chinese 304-grade cold-rolled stainless steel was offered in the range of $2,000-2,050/t FOB, while Taiwanese 304 CRC offers were heard at $2,050-2,100/t CFR. Average transaction levels across Asia were assessed at around $2,050/t CFR for 304-grade cold-rolled material.

In Taiwan, leading producers such as Yusco, Tang Eng, and Walsin Lihwa are facing mounting cost pressures due to higher nickel prices and rising Indonesian upstream costs. However, market participants indicated that actual deal prices are still being concluded close to $2,050/t CFR, reflecting resistance from buyers amid subdued demand.

Market participants noted that while cost inflation is providing support to stainless steel prices, a sustained upside will depend on clearer signs of demand recovery across key Asian consuming markets.

Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.