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Stainless Steel Prices Face Headwinds as Nickel Costs Drop and Demand Softens
Non-Energy Minerals · Steel · economic_daily · 2026-10-16
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With nickel prices falling and demand cooling, Taiwanese steelmakers Yieh United and Tang Eng face downward pressure on their November pricing after months of hikes.
What Happened
Market Shift: Domestic stainless steel prices, which had risen for three consecutive months, are now facing a downturn due to falling nickel prices and weakened demand. The move by major Asian supplier Tsingshan to cut export prices for its 300-series hot-rolled products has put significant pressure on Taiwanese manufacturers Yieh United and Tang Eng.
Raw Material Trends: Nickel prices on the London Metal Exchange (LME) have fluctuated downward, dropping approximately 7% since late September. Concurrently, the price of nickel pig iron in China has also declined, eroding the cost support that previously bolstered steel prices.
Competitive Pressures: To reflect lower input costs and stimulate orders, Tsingshan has reduced its export prices, complicating the pricing strategy for Taiwanese mills. The overall weak sentiment in the Chinese stainless steel market further exacerbates the lack of upward momentum in the region.
Future Outlook: As the fourth quarter begins, the industry faces the dual challenge of year-end inventory liquidation and capital recovery. Analysts suggest that Taiwanese steelmakers will find it increasingly difficult to maintain domestic price levels or secure export orders in the coming month.