Stainless Steel Price Adjustments and Market Insights

Recently, the international price of nickel, a crucial raw material for stainless steel, has seen a downward trend, breaking below $18,000 per ton on the 14th. In response, Indonesian Qingshan has revised its stainless steel coil prices for Taiwan downwards, making it challenging for domestic stainless steel manufacturers in Taiwan to maintain their current prices.

Additionally, geopolitical tensions have led to an increase in shipping costs, which has impacted the demand for stainless steel. There is concern that the continuous price increases seen in the stainless steel market this year may be interrupted by the end of June.

Benefitting from the surge in nickel prices, the stainless steel market has seen a gradual increase in prices. In Taiwan, despite not officially opening bids, companies like Ye Lian have raised their prices for six consecutive months, and another local stainless steel manufacturer, Tang Rong, has also increased product prices five times in the first half of the year.

However, the recent correction in nickel ore prices, which fell from over $21,000 per ton on May 20th to $17,300 per ton last week, presents a significant challenge. The drop in nickel prices has led to a substantial decrease of approximately $50 per ton in Indonesian Qingshan's stainless steel coil prices for Taiwan, exerting pressure on local manufacturers as they prepare for new price listings at the end of June.

The industry points out that the most significant issue remains weak demand, a problem faced by both Taiwan and mainland China. Although the economic situation in Europe and America is gradually improving, the volume of replenishment orders is still low, and the light market transactions make it difficult for stainless steel prices to continue rising.

Furthermore, geopolitical risks continue to affect stainless steel export trade. The ongoing crisis in the Red Sea has driven up shipping costs, making traders reluctant to take orders easily, which in turn affects the exports of stainless steel manufacturers. It is suggested that maintaining current prices may be the best scenario for the upcoming listings.