A nickel price rebound, supported by Indonesian supply policies and high production costs, drove Taiwan’s upstream mills, including Yieh United Steel Corporation (Yusco) and Tang Eng Iron Works Co., Ltd. (Tang Eng), to repeatedly raise stainless steel prices in the first half of the year. However, momentum is fading as downstream processors and distributors report sluggish orders and difficulty passing costs through to end customers.
Market participants said that buyers have adopted a cautious, hand-to-mouth purchasing approach, dampening any prospect of large-scale restocking. For the second half, analysts see prices trapped between a cost floor, kept firm by Indonesian refined nickel capacity and Asian billet prices, and a demand ceiling, where the EU’s CBAM carbon levy and a disappointing global manufacturing recovery are suppressing export orders.
A mild restocking pickup is possible around October, when seasonal demand traditionally improves, but price negotiations between mills and buyers are expected to remain tense throughout the period.