[SMM Stainless Steel Flash] CBAM Default Values Corrected After Seven Months; PwC Study European Steel Industry

Prices for AISI 304 stainless steel cold-rolled coils edged higher across Asian markets, supported by upstream mill price hikes and increased spot market activity, with cost factors underpinning prices despite sluggish end-buyer demand. Chinese export offers rose approximately US$30/ton week-on-week, driven primarily by climbing raw material costs and improved procurement from Southeast Asia. However, elevated domestic inventory in China continued to exert downward pressure on spot prices. On the raw materials front, Indonesian NPI prices edged up largely due to new export inspection regulations implemented by Indonesian customs, which have disrupted the flow of nickel product exports.

India's leading stainless steel producer Jindal Stainless reported a 7.6% YoY increase in consolidated net profit to Rs 769 crore for Q1 FY2027, with revenue from operations growing 10.5% to Rs 11,279 crore, driven by higher realizations and a richer product mix. However, finished goods sales volumes declined 7.3% to approximately 580,800 tonnes as industrial gas shortages caused by geopolitical conflict restricted production and reduced capacity utilization to 68–70%. The company said domestic demand remained healthy and maintained its annual volume growth guidance of 7–9%, while planning to offset reduced European exports by targeting alternative markets including Japan and Brazil.

Chinese Taiwan's upstream stainless steel mills announced August price increases of NT$1,500/ton for 300-series products, but the first week following the adjustment saw chaotic market conditions with actual transaction prices broadly reverting to July levels. Sluggish overall demand and expectations of further mill price adjustments have prompted operators to adopt a cautious stance, prioritizing inventory reduction and cash flow preservation.