Stainless Steel Prices Gain Support as Nickel Hits 9-Month High and Fed Rate Cuts Continue
The global stainless steel market is seeing renewed price support as easing monetary policy in the United States boosts raw material markets. With the U.S. Federal Reserve continuing its interest rate cuts to stimulate economic growth, liquidity conditions have improved, driving a rebound in commodities. Among them, nickel prices on the London Metal Exchange (LME) have risen sharply, reaching a nine-month high, providing direct cost pressure to stainless steel producers.
As a result, major Taiwanese stainless steel mills have announced price increases for January 2026 contracts, reflecting higher upstream costs and a more stable pricing outlook. Market analysts note that the combination of rising nickel prices, supportive monetary policy, and tighter export controls in China is helping to stabilize stainless steel prices, although a sustained recovery will still depend on downstream demand.
Taiwanese Stainless Steel Mills Announce January Price Increases
According to the latest price announcements, Walsin Lihwa raised prices for its 300-series stainless steel by NT$4,000 per ton, while 200-series and copper-bearing grades increased by NT$1,000 per ton. Prices for 400-series and 316 surcharges remained unchanged. Tang Eng Iron Works increased its 304 stainless steel prices by NT$5,000 per ton, while 316L surcharges stayed flat. Yieh United Steel Corp. (Yusco) also raised 304 prices by NT$5,000 per ton, increased 316L by NT$1,000 per ton, and kept 430 prices unchanged.
These adjustments reflect the rising cost environment faced by stainless steel producers, especially as nickel prices continue to strengthen.
Nickel Prices Surge on Supply Cuts and Policy Expectations
LME nickel prices rebounded strongly after Indonesia, a key nickel-producing country, announced plans to reduce output in order to support prices. On December 30, nickel prices surged nearly 5% in a single day, climbing above US$16,600 per ton, the highest level since March 2025. This late-stage rebound has significantly increased production costs for stainless steel mills, particularly for nickel-intensive grades such as 304 and 316.
At the same time, expectations that the U.S. Federal Reserve will continue easing monetary policy have improved global financial liquidity, further supporting raw material prices across the metals market.
China’s Export Controls Add Price Stability to the Market
Adding to the supportive factors, China has announced that export license management will be implemented for selected steel products starting January 1, 2026. This policy is expected to curb irrational exports, reduce excessive low-priced competition, and help stabilize the global steel supply-demand balance. Industry participants believe this measure may contribute to a gradual recovery in stainless steel demand and improve price discipline across international markets.Market Outlook Remains Cautiously Optimistic
Overall, stainless steel prices are receiving support from multiple directions, including higher nickel costs, improved financial conditions, and tighter trade controls. However, analysts emphasize that the sustainability of this upward trend will still depend on whether end-user demand in construction, manufacturing, and infrastructure shows a clear recovery in the coming months.
At YES Stainless International, we continue to closely monitor raw material movements, mill pricing strategies, and global policy developments to help our clients secure stable supply and competitive pricing in a changing market environment.
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