- 316L CRC prices rise nearly 20% since January
- Raw material inflation squeezes mill profitability
SteelDaily: China’s 316L stainless steel cold-rolled coil (CRC) market continued to strengthen in early May, supported by a sharp rise in nickel and molybdenum prices amid tightening raw material availability and higher production costs. Market participants noted that elevated alloy prices and Indonesian nickel policy changes continue to support bullish sentiment across the high-grade stainless steel segment.
According to market sources, 316L CRC prices from major Chinese mills, including TISCO and Yongjin, increased by nearly 20% since the beginning of 2026. As of 8 May, Taiyuan-origin 316L CRC prices were assessed at around RMB 29,650/t in Wuxi and RMB 29,700/t in Foshan.
The rally was primarily driven by higher raw material costs. Nickel ore prices reportedly surged more than 50% year-on-year to nearly $80/wmt, while nickel pig iron (NPI) prices increased over 20% compared with early-year levels. Market sentiment further strengthened after Indonesia moved toward restructuring its nickel royalty mechanism, including possible increases in royalty rates for nickel prices between $16,000-26,000/t, adding further uncertainty to the supply outlook.
At the same time, the molybdenum market remained firm due to limited mine supply and aggressive procurement by major stainless steel producers following the Labour Day holiday. Molybdenum ore prices reportedly rose 26% since the start of the year, while ferromolybdenum prices increased over 21%, further lifting 316L production costs.
Industry data indicated that the production cost of 316L CRC in China climbed more than 12% since January, reaching around RMB 28,500/t. However, profitability remained under pressure as steelmakers struggled to fully pass on rising input costs. Mill profit margins reportedly declined from around 3.5% earlier this year to below 2% currently.
On the supply side, China’s May 316L stainless steel output is expected to increase to around 123,500 t, up 10.7% y-o-y. Although inventories increased slightly after the holiday period, overall 300-series inventory levels remained lower year-on-year, indicating relatively manageable stock levels.
Outlook
Market participants expect China’s 316L stainless steel prices to remain elevated in the near term, supported by firm alloy costs, tight molybdenum supply, and Indonesian nickel policy uncertainty. However, weak downstream purchasing appetite and pressure on end-user affordability may restrict aggressive price gains, leading to range-bound trading at higher levels.
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