Nickel Prices Continue to Support China’s Stainless Steel Market

China’s stainless steel market remains steady ahead of the Lunar New Year, mainly supported by firm nickel prices. Although overall trading activity has slowed, price levels have not shown clear signs of weakening.

In the domestic market, cold-rolled stainless steel prices have moved higher in recent weeks. Market sources reported that some transactions increased by around USD 100 per metric ton within a short period. The rise reflects higher production costs rather than a sudden improvement in demand.

Raw Material Pressure Limits Price Adjustments

Nickel prices on the London Metal Exchange have stayed at relatively high levels. At the same time, Indonesian nickel pig iron prices have continued to rise. These changes have increased cost pressure across the stainless steel supply chain.

Chinese mills are therefore holding firm offers. Even where demand remains cautious, sellers show limited willingness to reduce prices. Market participants generally believe that current price levels are closely linked to raw material costs.

Cold-rolled products remain the most stable segment, supported by steady inquiries from both domestic users and export buyers.

Holiday Factors Shape Short-Term Market Outlook

The approaching Lunar New Year is affecting market behavior. Many buyers have already completed pre-holiday purchases, while others are slowing new orders as the holiday draws closer.

Despite lower trading volume, the market remains balanced. Higher costs have helped prevent price declines, and most participants expect stainless steel prices in China to stay stable before the holiday break.

For buyers following China’s stainless steel supply and export trends, current conditions suggest limited short-term downside. More market updates and product information are available at lyhsteel.com.

FAQ

1. Why are stainless steel prices firm in China?

Prices are mainly supported by high nickel costs, which have raised production expenses for mills.

2. Does the Lunar New Year usually affect steel prices?

Yes. Trading often slows during the holiday, but pre-holiday buying can help support prices beforehand.

3. Is demand strong in the current market?

Demand remains cautious. However, higher raw material costs are preventing price reductions.

4. What should overseas buyers watch next?

Nickel price movements and post-holiday demand recovery will be key factors.