A widening nickel supply gap and price hikes from Indonesia Tsingshan are driving a recovery for the stainless steel industry. Companies including Walsin Lihwa, Tang Eng, Yuen Chuan, and Yuen Chang report strong second-quarter orders. Recent Middle Eastern conflicts have raised risk costs, lifting global steel prices and helping the sector move past last year's downturn.

Tang Eng's utilization rate now exceeds 85%, aided by a weaker New Taiwan Dollar that improves export competitiveness. Meanwhile, Yuen Chang is expanding its production of high-precision stainless steel strips for the electronics and electric vehicle markets.

With economic stimulus programs gaining traction, these manufacturers expect improved revenue and a return to consistent profitability throughout the period.