- Hot-rolled 304 allocations emerge as key competitive focus
- Mills offer specification-based incentives to attract selective Korean buyers
SteelDaily: South Korea’s cold-rolled (CR) stainless steel market showed a mixed trend in October 2025, with production improving m-o-m while shipments recorded a sharp decline. Mills maintained steady operating rates, but weak downstream demand-both domestic and export-kept overall sentiment cautious and procurement limited.
Cold-Rolled stainless steel production trends
Cold-rolled stainless steel output rose to 77,817 t in October, up 5.3% m-o-m, though still 2.5% lower y-o-y. Stable mill operations and adequate raw material availability supported production through the month.
Cumulative Jan-Oct ’25 production stood at 744,480 t, marking a 3.6% y-o-y decline.
Sales & shipments weaken
Sales performance weakened further, with total cold-rolled stainless steel sales falling to 72,610 t in October, down 8.1% from the previous month and 4.8% lower y-o-y. Domestic sales dropped to 48,273 t, slipping below the 50,000 t mark once again in 2025, while export sales reached 24,337 t amid subdued overseas demand.
Overall shipments fell sharply by 23.7% to 18,857 t, signalling persistent weakness in downstream consumption and cautious procurement across key sectors.
Cold-Rolled 304 offers stabilise across origins
In the import market, cold-rolled 304 stainless steel offers from China, Taiwan, and Indonesia have stabilised as suppliers finalise shipments for Jan-Feb’26.
Market offers are largely converging around $1,950/t CFR, establishing a firm floor for Korean imports.
Industry participants noted that $1,950/t now represents the practical minimum viable price for 304 CR in Q1 2026, as lower offers risk attracting additional tariff burdens. With demand across Asia remaining sluggish, suppliers from all three regions are aligning closely with this benchmark for early-2026 shipments.
Hot-Rolled prices become key contract driver
Hot-rolled 304 stainless steel has emerged as the key price variable influencing contract decisions. Although the theoretical CR-HR spread stands at $200/t, actual offers show narrower differentials as mills adjust margins to sustain competitiveness. Some suppliers are offering spreads near $100/t, while others are quoting at $120-150/t.
Current 304 HRC offers into Korea range between $1,780 and $1,850/t CFR, depending on origin and producer strategy.
Outlook
Competitiveness in the Korean stainless steel import market continues to vary across origins, influenced by tariff applicability, supplier pricing discipline, and product-specific specifications. With cold-rolled prices now stabilised near the benchmark level, buyer attention has shifted toward hot-rolled offers. The prices are expected to play a decisive role in Q1CY’26 contract finalisation as mills and traders navigate sluggish demand and cautious buying sentiment.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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