- Buyers remain cautious despite stronger won–dollar exchange.
- Asian 304 CR offers drop slightly on weak demand.
SteelDaily: South Korea’s stainless steel market remained sluggish in the week ending 12 December, weighed down by a broader economic slowdown and the typical year-end wait-and-see sentiment. Distributors continued to face mounting sales pressure, intensifying competition across regions, while prices stayed weak amid the absence of any meaningful demand recovery.
Despite a firmer won–dollar exchange rate, purchasing sentiment remained muted, with imported offers entering the market steadily but generating limited booking interest. Market participants highlighted that year-end inventory adjustment pressure, concerns over financial stress and potential insolvency risks among downstream steel consumers, and the ongoing weakness in end-use sectors collectively kept procurement restrained, resulting in subdued trading activity.
Retail prices for 304 cold-rolled coils were heard at KRW 3.3–3.4 million/t ($2,245–2,312/t) , though the lower end fluctuated as distributors offered discounts to stimulate buying. GS Materials’ domestic cold-rolled prices also extended their soft trend, narrowing the gap with imported offers. Imported stainless coils were heard at KRW 2.9–2.95 million/t ($1,972–2,008/t), while GS CR traded at KRW 2.95–3 million/t ($2,008–2,041/t), signalling limited price-defence capability and heightened competitive pressure across the distribution network.
China: Modest recovery in 304 CR; inventories decline
In contrast, China recorded a mild improvement in market sentiment. Tisco’s 304 cold-rolled coil price in Wuxi rose by nearly CNY 100/t ($14/t) to CNY 13,400/t ($1,899/t), supported by firmer agency prices from Tsingshan, a slight rebound in stainless steel futures, stabilising ferrochrome prices, and a recovery in ferronickel. Lower inventories at major warehouse hubs also contributed to the uptick. However, despite the modest improvement in China, sentiment across the broader Asian stainless steel market remained subdued.
Asia: Regional trading remains weak, offers decline slightly
Asian 304 cold-rolled stainless steel offers were assessed at $1,780–1,850/t CIF, down by $20–30/t w-o-w as sluggish regional demand continued to restrict contracting activity. Year-end inactivity, slow procurement cycles, and limited downstream offtake kept buyers cautious, making it difficult for suppliers to secure tonnages ahead of the New Year period.
Outlook
The near-term outlook remains weak, with both domestic and regional stainless steel markets expected to stay under pressure through late December. Real demand remains soft, buyer engagement is constrained by year-end financial closures, and overseas sentiment remains subdued. Market participants broadly expect prices to remain weak and range-bound until early-Q1 2026, with stability likely only after clearer demand cues emerge in January.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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