Asian stainless steel trade slows as freights surge, demand remains weak

• Container shortages push shipping costs higher
• Higher Chinese domestic prices support export offers

SteelDaily: Stainless steel trading activity across Asia has weakened during June amid a sharp rise in container freight rates and sluggish end-user demand, limiting export transactions despite firmer stainless steel prices in China.

According to market participants, soaring ocean freight costs, particularly on long-haul routes, have reduced buyers’ purchasing interest and squeezed exporters’ margins. Freight rates for 20-foot containers (TEU) from Shanghai to major South American ports reportedly increased to $6,000-7,000 this week, compared with around $2,000/TEU at the beginning of 2026. The rise has been attributed to container shortages and delays in container returns to export hubs.

The Shanghai container freight index for the South America route rose by nearly 10% w-o-w to 1,138.74 points on 12 June from 1,036.53 points on 5 June, reflecting continued pressure on logistics costs.

Meanwhile, Chinese stainless steel export offers moved higher, supported by rising domestic prices and stronger nickel futures. Chinese 304-grade cold rolled stainless steel export prices were assessed at $2,290-2,370/t FOB on 17 June, up by $20-40/t w-o-w. Similarly, 304 hot rolled coil export prices increased to $2,210-2,290/t FOB.

The price gains followed a rebound in Shanghai nickel futures, with July nickel contracts settling at RMB 136,490/t, up RMB 1,950/t from the previous trading session. Domestic Chinese 304 cold-rolled stainless steel prices also increased by RMB 100-300/t to RMB 15,200-15,300/t.

However, market sentiment remains subdued as the summer seasonal slowdown weighs on downstream demand. Exporters across Asia have reportedly lowered transaction prices to stimulate sales, particularly in Europe and the Middle East, but buying interest remains limited due to elevated freight costs.

As a result, Asian transaction prices for 304 cold-rolled stainless steel fell by $70-130/t w-o-w to $2,100-2,180/t CIF, while 304 hot-rolled coil prices declined to $1,990-2,070/t CIF.

Market participants believe that although nickel and Chinese domestic prices are supporting export offers, weak demand and high freight costs continue to constrain trading activity across the region.

Note: This article is published as part of a content exchange agreement between SteelDaily and BigMint.