- SHFE nickel surges from mid-Dec’25 lows
- Holiday season keeps market activity muted
SteelDaily: Asian stainless steel prices remained firm in end-December 2025, supported by a sharp rally in nickel prices and tightening supply expectations from Indonesia. However, actual spot trading activity stayed subdued, as buyers resisted higher offers amid seasonal slowdown and weak demand visibility.
Nickel rally lifts market sentiment
Market sentiment turned bullish after reports that Indonesia may reduce its 2026 nickel ore mining quota (RKAB), raising concerns over future raw material availability. This triggered a strong rebound in nickel futures on the Shanghai Futures Exchange (SHFE).
The most-active February nickel contract surged to RMB 135,570/t ($19,372/), up sharply from the 6 December low of RMB 111,770/t ($15972/t), reflecting heightened supply-side concerns.
Suppliers raise offers, buyers push back
Asian stainless steel sellers moved lifted offer prices in response to rising nickel costs. However, higher prices were met with resistance, leading to a visible slowdown in transaction volumes compared with the previous week.
In China’s domestic market, 304-grade cold-rolled stainless steel (2mm) prices rose by CNY 50-100/t ($7-14/t) w-o-w to RMB 13,200-13,250/t ($1,883-1,891/t) . Meanwhile, 430-grade cold-rolled prices remained unchanged at RMB 7,100-7,550/t ($1,014-1,078/t), indicating selective support limited to nickel-bearing grades.
Export prices firm across Asia
China’s export prices for stainless steel also strengthened. FOB prices for 304-grade cold-rolled stainless steel increased by $30/t w-o-w to $1,920-2,000/t, while hot-rolled 304 material was quoted at $1,880-1,940/t FOB.
For East Asian markets, cold-rolled 304 stainless steel prices rose by $40-50/t during the week to $1,880-1,910/t, while hot-rolled 304 prices were heard at $1,780-1,800/t.
Market quiet during holidays
Despite firm pricing, the Asian stainless steel market remained largely quiet due to high export prices, buyer resistance, and the year-end holiday period. Market participants expect price discovery to improve once full-scale operations resume, with prices likely to adjust toward levels that better reflect actual demand.
Outlook
While nickel strength and Indonesia-related supply risks continue to underpin stainless steel prices, trading is expected to remain thin. Market participants anticipate clearer trends to emerge once holiday disruptions fade and buyers reassess procurement needs under a new cost environment.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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