A new export licensing system in China targets steel products, including all stainless steel products, starting next year, triggering expectations for higher global prices. This Chinese policy is to curb overcapacity and trade irregularities, easing competitive pressure on Taiwanese manufacturers.

After the Chinese policy release, Indonesia Tsingshan recently raised offers by US$30 per ton, bringing its total increase to US$60 since December.

Although Taiwan’s domestic demand remains weak, high production costs forced mills to keep prices steady or slightly higher for December. Market participants expect another price hike in January as raw material expenses rise. Actual transaction prices may struggle to jump significantly due to slow consumption; however, China’s strict supply management provides a firm floor for the upcoming market cycle.