- Cold-rolled prices remain firm amid rising costs
- Hot-rolled market weakens as demand stays sluggish
SteelDaily: Indonesia’s Tsingshan continues to raise stainless steel export offers across Asia, including Taiwan, but market response is becoming increasingly differentiated between hot-rolled and cold-rolled products amid weak downstream demand and growing cost fatigue.
Market participants noted that recent price increases are being reflected more effectively in 304 cold-rolled stainless steel, while hot-rolled coil prices have largely stagnated due to resistance from buyers. Current export offers for Indonesian 304 hot-rolled stainless steel were heard around $2,100-2,150/t CIF Asia.
The market remains supported by elevated production costs following the sharp rise in nickel ore, nickel pig iron (NPI), and energy prices since the beginning of the year. Indonesia’s tightening nickel policies and revised nickel ore benchmark (HPM) pricing mechanism have significantly increased raw material costs for stainless steel producers.
According to sources, Indonesian nickel ore prices remained elevated as of mid-May. Benchmark HPM prices for 1.6% nickel ore stood above $62/wmt, while actual market transactions were reported near $78/wmt. Similarly, 1.8% nickel ore prices were heard above $90/wmt in the spot market, reflecting sustained ore tightness and higher mining costs.
However, market participants noted that mills are facing increasing difficulty passing on higher costs to end-users due to delayed global economic recovery, oversupply concerns, and weak actual demand across key stainless steel-consuming sectors.
Meanwhile, nickel futures on the Shanghai Futures Exchange (SHFE) entered a correction phase after recent highs above RMB 150,000/t ($22,107/t), weighing on broader stainless steel market sentiment in China. Improved ore supply from Indonesia’s dry-season mining activity and higher shipments from the Philippines also contributed to easing short-term concerns over ore availability.
High-grade NPI prices in China remained relatively stable around RMB 1,150/mtu ($169/t), although the pace of further gains has slowed. Ferro chrome prices also softened slightly, reflecting weaker momentum in alloy markets.
In China’s domestic stainless steel market, 304 hot-rolled coil prices reportedly declined by RMB 100-200/t ($14-29/t) in Wuxi compared to the previous week, while cold-rolled prices remained relatively stable, highlighting the growing divergence between the two segments.
Outlook
Asian stainless steel markets are expected to remain mixed in the near term. While elevated nickel and ore costs continue to support cold-rolled stainless steel prices, weak downstream demand and easing speculative sentiment may limit further upside in the hot-rolled segment.
This article is published as part of a content-exchange agreement between SteelDaily and BigMint.
Leave a Reply