Indonesia’s supply controls drive up nickel prices and stainless steel industry profits
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Update time : 2026-01-21 18:18:34
Indonesia’s policy to tighten 2026 nickel production quotas triggered a 24% price surge in just four weeks. With LME nickel now trading around US$18,000 per ton, the stainless steel industry faces a major turning point.
Taiwan’s major upstream stainless steel producers, such as Yieh United Steel Corp. (Yusco), Tang Eng, and Walsin Lihwa, are expected to benefit as rising raw material costs push domestic and export quotes higher.
This policy change reverses a two-year period of oversupply that previously squeezed profit margins. Now, buyers are rushing to secure stock before further price hikes, accelerating inventory depletion across Asia.
According to market participants, the market bottom has passed, leaving upstream mills and downstream processors in a stronger position to raise prices amid recovered demand.
