East Asian stainless steel prices surge on costlier nickel, strong yuan

China’s currency appreciation and rising nickel prices fueled gains in East Asia’s stainless steel market over the past week.

Metal Bulletin’s assessment of prices for benchmark 304 stainless 2mm cold-rolled coil was $2,250-2,300 per tonne cif East Asian ports for the week ended Wednesday January 31, up $100-150 per tonne from $2,100-2,200 per tonne cif a week earlier.

Metal Bulletin’s assessment of prices for benchmark 304 stainless hot-rolled sheet was $2,180-2,230 per tonne cif East Asian ports for the same period, up $130-230 per tonne week on week.

Deals involving small shipments of stainless CRC were concluded around $2,250-2,300 per tonne cif, according to market participants.

Offers for stainless CRC from Chinese mills, up until Wednesday this week, were at $2,250-2,350 per tonne cif, up $100-150 per tonne from $2,150-2,200 per tonne cif a week earlier, according to market sources.

Taiwanese stainless CRC was offered around $2,300 per tonne cif, up $100-120 per tonne week on week.

For stainless hot-rolled sheet, offers from Chinese mills came in at $2,180-2,210 per tonne cif, up $60-230 per tonne week on week. Taiwan-origin stainless hot-rolled sheet was offered at $2,230-2,250 per tonne cif.

Market participants think stainless hot-rolled sheet could change hands around $2,180-2,210 per tonne cif.

Rising nickel prices coupled with the stronger Chinese yuan and Taiwanese dollar led to higher stainless steel prices in East Asia during the week, market sources said.

The three-month nickel contract on the London Metal Exchange ended the official trading session on Wednesday at $13,545-13,550 per tonne, up $545 per tonne week on week.

Nickel from the Philippines and Indonesia – which many Chinese mills use – is also in short supply because Southeast Asia’s current rainy season is affecting mining and production there, a trader in Macau said.

“China’s domestic stainless steel gains pushed export prices up as well,” a trader in China’s Jiangsu province said.

In the country’s major Wuxi market, prices for 304 stainless CRC stood at 14,500-15,400 yuan ($2,302-2,445) per tonne including VAT on Wednesday, widening from 14,700-15,300 yuan per tonne a week earlier. Prices for 304 stainless hot-rolled coil were at 14,100-14,300 yuan per tonne including VAT on the same day, up 600-700 yuan per tonne week on week.

But demand remained soft due to the upcoming Lunar New Year break in mid-February, according to market participants.

“Several buyers were also surprised by the sudden price surge and so are taking a wait-and-see approach,” another Jiangsu-based trader said.

But transactions were still concluded because some end-users cannot afford to wait for prices to fall, the Macau-based trader said. “They need to replenish their inventories to maintain market share,” he added.

Although end-users typically shut their facilities temporarily ahead of the Lunar New Year, some in China are also stocking up in anticipation of further price increases after the February 15-21 holiday, according to the first Jiangsu-based trader.

What to read next
The growth is largely expected to be driven by stricter environmental regulations, increasing pressure from consumers and investors for sustainable products, and the region's commitment to achieving carbon neutrality, according to sources.
Over a decade since its first attempt, Glencore appears to have taken another tilt at Rio Tinto.
Participants in the market for copper scrap and blister in China, the world’s largest importer of copper raw materials, expect there to be fiercer competition for material in 2025, industry sources told Fastmarkets in the week to Thursday January 9.
The biggest threat to keeping carbon emissions low in the steel industry is imports flowing in from regions where there is a lack of focus on emissions reduction, Kevin Dempsey, president and chief executive officer of the American Iron and Steel Institute, said at Fastmarkets’ second annual Circular Steel Summit on Wednesday January 15 in Houston, Texas.
The availability of relatively untapped resources, a huge influx of Chinese investment and a rapid licensing system have helped the Democratic Republic of Congo (DRC) to become one of the world’s three key producers of copper.
US President-elect Donald Trump’s second term in office will hit the US steel market hard and fast, delegates heard at Fastmarkets’ second annual Circular Steel Summit on Wednesday January 15 in Houston, Texas.