- Fourth hike in Jan takes cumulative increase to $180/t
- Nickel rally, tightening Chinese supply support gains
SteelDaily: Indonesia’s leading stainless steel producer Tsingshan raised its export offers for 304-grade stainless steel once again on 26 January, marking the fourth upward revision this month. The producer announced a $30/t hike for 304-grade exports to Southeast Asia, while no fresh offers were extended to South Korea, traders said.
With this latest adjustment, cumulative price increases for January alone have reached around $180/t, underlining firm producer confidence, driven by firm Chinese market cues. Market participants reported current export offers for Indonesian 304 hot-rolled coils to Southeast Asia in the range of $1,900-1,920/t CFR, levels now closely aligned with prevailing spot prices in the Chinese domestic market.
China-linked pricing strategy supports firmness
Industry sources said Indonesia’s liquidation pricing strategy continues to mirror movements in China’s stainless steel market. “When Chinese prices rise, Indonesian mills move quickly to raise offers. However, during short-term corrections in China, Indonesian prices tend to hold rather than follow the downside,” a regional trader noted. This approach has narrowed arbitrage opportunities and reduced buyer leverage across Asia.
The latest hike comes amid steady stainless steel demand in China and limited spot availability, which has allowed Indonesian suppliers to maintain elevated offers without significant resistance.
Nickel surge intensifies cost pressures
Cost-side pressure has intensified further as LME three-month nickel futures surged to $18,900/t on 26 January, the highest level since June 2024. Nickel prices have risen nearly 19.5% m-on-m over the past four weeks, significantly lifting stainless steel production costs and reinforcing mills’ resolve to defend higher finished steel prices.
Outlook
Stainless steel prices in Asia are expected to remain firm in the near term, supported by elevated nickel costs and Indonesia’s disciplined pricing stance. However, sustained resistance from downstream buyers could limit further upside unless demand improves materially.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
Leave a Reply