[SMM Stainless Steel Flash] Taiwan (PoC)'s Froch targets early 2027 start-up at Morocco pipe plant aimed at Europe

YC INOX, a stainless steel pipe maker in Taiwan (PoC), continues to reshape its product mix, with industrial piping, special clean pipes and liquid cooling pipes for AI data centres accounting for nearly 70% of first-half shipments. The company was profitable in the first half, with second-quarter results clearly improving on the first. Overseas, its Turkish subsidiary posted a sharp rise in second-quarter revenue and record shipments in June. Output from the local cold-rolling line is ramping up, with a target of roughly a third more, to cut raw material costs and avoid Turkish import duties on cold-rolled coil. AI liquid cooling is emerging as a new source of demand for stainless pipe, while local cold rolling in Türkiye both sidesteps import duties and brings the company closer to European and Middle Eastern markets. A point to watch is where the Turkish line sources its hot-rolled feed: if it uses black coil from Indonesia or elsewhere, any exports to the EU will still be subject to melt-and-pour origin rules.

Novametal USA released its October 2026 raw-material surcharges for stainless steel cold-drawn wire. The molybdenum average increased 1.0% from US$33.2230/lb to US$33.5558/lb, equivalent to approximately US$73,244/t and US$73,978/t. However, nickel and chromium averages declined 1.9% and 1.2%, respectively. Consequently, the 316 alloy surcharge fell from US$1.94/lb to US$1.92/lb, while 316L declined from US$1.98/lb to US$1.97/lb. After the energy surcharge rose from US$0.10/lb to US$0.12/lb, the total 316 surcharge remained unchanged at US$2.04/lb and 316L edged up to US$2.09/lb. SMM analysis: weaker nickel and chromium partly offset higher molybdenum costs, limiting downstream price transmission.

Tubacex issued its October tube alloy surcharges. In euros, hot-/cold-finished 316/316L fell from €5.07/€5.59 per kg (€5,070/€5,590 per tonne) to €5.05/€5.56 per kg (€5,050/€5,560 per tonne). High Mo content materials, with Mo above 2.5%, declined from €5.26/€5.79 to €5.23/€5.76 per kg. Surcharges for 2205 and 2507 were unchanged, while 254 SMO rose from €9.64/€10.62 to €9.67/€10.65 per kg. SMM analysis: most Mo-bearing tube grades were flat or slightly lower, while 254 SMO moved higher, indicating differentiated cost transmission across grades.