- China to enforce export licensing for stainless steel
- Taiwan mills hold Dec prices amid cost pressures
Taiwan’s stainless steel prices are expected to move higher following China’s decision to introduce a new export licensing system covering steel products, including all stainless steel grades, from next year. The policy is aimed at curbing overcapacity and irregular trade practices, which is expected to reduce aggressive export flows from China and support global prices.
Market participants noted that the announcement has already influenced regional pricing trends. Indonesia-based Tsingshan recently raised its stainless steel export offers by $30/t, taking the cumulative increase to $60/t since December, reflecting improving price sentiment across Asian markets.
Despite weak domestic demand in Taiwan, elevated production costs have prompted local mills to keep prices steady or marginally higher for December. Rising raw material costs are expected to further pressure mills, with another price increase anticipated in January.
However, actual transaction prices may see limited upside in the near term due to sluggish end-user consumption. That said, China’s stricter supply-side management is expected to provide a strong price floor, supporting the stainless steel market in the upcoming cycle.
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