In March, stainless steel mills raised product prices due to rising raw material costs.

Market Dynamics: Price Adjustments Amid Rising Raw Material Costs

Against the backdrop of a constantly changing global economic landscape, the steel industry is undergoing a series of complex changes. On February 27, 2025, Taiwanese media reported that the stainless steel industry was undergoing significant price adjustments. The rebound in prices of stainless steel raw materials such as ferronickel and ferrochrome, as well as changes in US tariffs on imported steel and aluminum, are jointly influencing the industry's trajectory.

Pricing Decisions Under the Dual Influence of Policy and Market

The US's elimination of tariff exemptions for steel and aluminum imports from certain countries is a significant move. On the one hand, it puts global steelmakers exporting to the US market on an equal footing, creating a seemingly more level playing field. On the other hand, it also presents new opportunities for steel companies to expand into the US market. Against this backdrop, many large stainless steel companies in Taiwan have made pricing adjustments.

Yeh Lian Co., Ltd. stated that despite the US imposing a 25% tariff on imported steel and aluminum products, the elimination of the tariff exemptions has enabled fairer competition for global manufacturers in the US market, facilitating exporters' expansion into the US. At the same time, the rebound in prices of upstream raw materials such as ferronickel and ferrochrome, as well as the persistently high price of stainless steel scrap, have significantly increased production costs for steel companies. Taking into account market and cost factors, Ye Lian decided to increase the price of 304 stainless steel products by NT$1,000 per ton in March, while prices for other products such as 430 and 316L remained unchanged.

Hua Xin Company noted that the implementation of new US tariffs and the removal of exemptions for some countries have created an opportunity for Taiwan to take on transferred orders. Furthermore, the easing of the Russia-Ukraine conflict suggests that post-war reconstruction will provide support for global steel prices. Due to the recent rise in ferronickel (NPI) raw material prices, Hua Xin made moderate adjustments to its product prices in March to appropriately reflect the increase in production costs. The 300 series product price was increased by NT$1,000 per ton, while the 200 and 400 series product prices remained stable.

Tang Rong Company specifically increased the price of its 304 product. In the company's March product price adjustments, 304 cold-rolled and hot-rolled products saw a NT$1,000 per ton increase, while 316L product prices remained unchanged.

Yeh Hsing Company, taking into account multiple factors, made broader price adjustments. The impending implementation of new US tariffs, the anticipated end of the Russia-Ukraine conflict, and the resulting demand for post-war reconstruction, coupled with recent increases in raw material prices, prompted the company to increase carbon steel coil prices by NT$500 per ton in March. For stainless steel coils, the 300 series saw a NT$1,000 per ton increase, while the 200 and 400 series remained unchanged.

Industry Outlook

The price adjustments by numerous stainless steel mills are a necessary response to market changes. Rising raw material costs are the direct driver of price increases, while changes in US tariffs have had a profound impact on the market competitive landscape. With the continued development of the global economy, and particularly the gradual progress of post-war reconstruction in Russia and Ukraine, steel demand is likely to increase further. At the same time, industry competition will intensify, requiring steel companies to continuously optimize production processes and improve product quality to secure a niche in the market. Amidst ongoing adjustments in global trade policies, the development of the steel industry remains uncertain. Companies must closely monitor market trends and flexibly adjust their business strategies to address future challenges and opportunities.