Market Summary

This week, China’s stainless steel market saw a sharp rise followed by a pullback, driven mainly by global geopolitical risks and strong movements in nickel prices.

Nickel prices surged after news that Indonesia may significantly reduce its 2026 nickel ore quotas, raising fears of future supply shortages. As nickel is a key raw material for stainless steel, stainless prices quickly followed the upward trend.

Later in the week, however, LME nickel inventories increased sharply, easing short-term supply concerns. Nickel prices dropped, and stainless steel prices also corrected.

The main stainless steel futures contract closed at RMB 13,860/ton, up 5.6% week-on-week, with a high of RMB 14,145/ton. Trading volume and open interest both increased strongly, showing heavy speculation and high market volatility.

Related Products:

Stainless Steel Coils & Strips    Stainless Steel Sheet    Seamless Stainless Steel Pipe    Stainless Steel Welded Pipe    Stainless Steel Angle    Stainless Steel Flat Bar    Stainless Steel Round Bars

1. Spot Market: Prices Jump, Demand Lags Behind

Spot prices of stainless steel in China increased by around RMB 900/ton this week, driven by the futures rally. However, despite higher prices, real end-user demand did not improve much.

Key spot market signals for overseas buyers:

  • Traders actively restocked due to low inventories

  • End-user demand remained weak and cautious

  • Buyers mainly purchased for immediate needs only

  • Year-end cash pressure limited aggressive buying

  • Supply was tight as some major mills had reduced or delayed output

  • Social inventory continued to decline, supporting prices

Raw material prices rose sharply, pushing production costs higher. Even so, steel mills are still operating with reasonable profit margins.

2. What This Means for International Buyers

For overseas importers, this market shows several important points:

  • Price increases are mainly driven by raw material speculation and geopolitics, not real demand

  • High prices face resistance from end users

  • Supply tightness and falling inventories provide short-term support

  • Price volatility will remain high

If nickel prices stabilize or fall further, stainless steel prices may return to levels based more on real supply and demand.

3. Buying Strategy for Importers

If you are sourcing stainless steel from China:

  • Expect short-term price fluctuations

  • Avoid chasing sudden price spikes

  • Watch closely:

    • Nickel and raw material trends

    • Chinese mill production schedules

    • Export order activity

  • Medium-term buyers may find better entry points if market sentiment cools

4. Inventory & Futures Snapshot

Registered stainless steel inventory in China fell slightly to 47,535 tons, continuing a slow destocking trend. This reduces immediate selling pressure but does not guarantee long-term price strength.

5. Market Outlook

China’s stainless steel market is expected to remain volatile and range-bound:

  • Costs and tight supply support prices

  • Weak seasonal demand limits upside

  • Prices are highly sensitive to nickel and global news

International buyers should stay flexible, monitor raw material trends, and plan purchases based on real project needs rather than short-term market hype.

Contact us for updated export prices, lead times, and customized supply solutions.