[SMM Stainless Steel Flash] Chinese Taiwan's Yusco Approves Private Placement and AI Integration Plan

Stainless steel wire rod export prices from Taiwan (PoC) have kept rising and now stand at their highest level in more than a year, after a sizeable cumulative gain over the past seven months. Higher costs for nickel and other raw materials have led mills to raise domestic list prices repeatedly, lifting export prices at local wire rod producers Walsin Lihwa and Yieh Hsing. Volumes have not kept pace, however: wire rod exports from Taiwan (PoC) in January–August remained below the same period last year. Market participants say any profit improvement at the two companies will depend on export volumes growing alongside higher prices. This also helps explain why Walsin Lihwa held its October 304 wire rod base price flat and adjusted only copper- and molybdenum-bearing grades: with export volumes soft, a broad price increase could further erode downstream export competitiveness. Points to watch are nickel prices and whether overseas wire rod demand recovers.

October 304 list prices in Taiwan (PoC) rose again, marking a third consecutive monthly increase, and market participants see this week as a test of whether distributors will accept the new levels. Mills are holding firm on pricing, and distribution channels still need to restock. Although raw material costs have fluctuated slightly, the finished product market remains resilient: Indonesian 304 2B cold-rolled export offers are firm and Asian quotations remain elevated overall. With inventory costs rising, distributors are gradually pulling back on low-priced sales, narrowing the supply of cheaper material. Prices are expected to edge higher with the low end of the range tightening, though this will depend on how the Chinese market performs after the holiday and on actual transactions. If Chinese prices soften after the holiday, distributors in Taiwan (PoC) will find it much harder to pass costs on.

Indonesian nickel ore CIF average prices remained broadly stable, with the latest SMM assessment: 1.2% Ni: CIF price at $25.5/wmt, unchanged 1.3% Ni: CIF price at $27.5/wmt, unchanged 1.4% Ni: CIF price at $48.7/wmt, unchanged 1.5% Ni: CIF price at $54.2/wmt, unchanged 1.6% Ni: CIF price at $59.0/wmt, unchanged In the upstream market, nickel ore prices have weakened from late-September levels as additional RKAB quotas gradually enter the market and sellers face increasing pressure to adjust prices. SMM reported that discounts have officially emerged, with some ore prices falling below the HPM benchmark. Meanwhile, the first-half October nickel HMA was reduced to $16,322.67/mt, down $375.33/mt, or 2.25%, from the second-half September HMA of $16,698/mt.