- Nickel rebound lifts China’s stainless steel prices sharply
- Hot-rolled stainless follows gradual upward trend
SteelDaily: China’s domestic stainless steel market witnessed a sharp pickup in prices and buying interest in mid-January, supported by a renewed rebound in LME nickel prices, higher raw material costs, and inventory restocking ahead of the Lunar New Year holidays. Mills’ firm pricing stance further reinforced the upward momentum, particularly across nickel-based grades.
As of 15 January, prices of 304-grade cold-rolled stainless steel were assessed at RMB 14,400/t ($2,066/t) in both Wuxi and Foshan. Wuxi prices rose by RMB 500/t ($72/t) w-o-w, while Foshan prices increased by RMB 400/t ($58/t), marking a strong weekly gain over a short period.
Hot-rolled prices follow upward trend
The rally also extended to hot-rolled products. Prices of 304-grade hot-rolled coils in Wuxi climbed by RMB 500/t ($72/t) w-o-w to RMB 14,000/t ($2,009/t), while Foshan prices edged up by RMB 100/t ($14/t) to RMB 13,800/t ($1,980/t). Although the increase in HRCs lagged CRCs, the trend reflects mounting cost pressure from raw materials.
Mixed performance across low-nickel grades
Price movements diverged for lower-nickel grades. 430-series cold-rolled stainless steel prices remained stable at RMB 7,450/t in Foshan, indicating limited cost pass-through. In contrast, 201-series CRC prices in Wuxi increased by RMB 150/t ($21/t) to RMB 7,700/t ($1,105/t), reflecting indirect spillover effects from nickel volatility.
Nickel rebound drives cost sentiment
Market participants attributed the recent price surge largely to higher international nickel prices, driven by supply-side concerns and speculative buying. Uncertainty surrounding Indonesia’s nickel sector—including potential delays in RKAB approvals and tighter environmental regulations-has revived fears of disruptions to nickel pig iron and matte supply, lifting global cost sentiment.
Distributors holding low-cost inventories were also more willing to accept higher offers, while mills moved swiftly to defend margins amid rising input costs.
Caution beyond the holidays
Despite the short-term strength, industry sources cautioned that underlying end-user demand remains modest. Pre-holiday advance purchasing has intensified near-term price pressure, but sustainability will depend on post-holiday demand recovery.
A market participant noted, “Nickel-led cost inflation is driving the current rally, but without a meaningful pickup in real demand after the holidays, prices could see consolidation or a corrective phase.”
Overall, China’s stainless steel market remains highly sensitive to nickel price movements, with volatility expected to persist amid global supply uncertainties and speculative activity in raw materials.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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