Following the May 1 Labor Holidays, China’s stainless steel market saw a sharp price increase, fueled by rising ferro-nickel costs and concerns over Indonesian nickel supply, including potential export taxes and production pauses at Weda Bay.

Tsingshan Group raised 304 stainless steel guidance on May 6, reflecting both raw material pressures and mills’ strategic control over shipments.

At the same time, agents have limited sales, holding stocks in anticipation of higher prices, while social inventories have started to rise.

Market observers note that while costs support prices, momentum may ease if production increases and downstream demand remains cautious. Key factors to watch include inventory trends, 300-series output, end-user buying, and Indonesian nickel policy.