[SMM Stainless Steel Flash] Jindal Stainless Opens 1.2 MTPA Melt Shop in Indonesia

LME nickel futures rose for a fourth consecutive session, rebounding toward US$18,000/ton. Growing expectations of a Middle East peace accord pushed oil prices to a three-month low, easing global inflation concerns and weakening the US dollar, lifting nickel to a weekly high. Fed rate hold expectations for this month added further support, paring some of June's earlier losses. LME nickel inventories rose 942 tons to around 27.5mt. However, sluggish seasonal demand and elevated stockpiles exceeding 270,000 tons cap near-term upside, pointing to a volatile, range-bound outlook in the short term.

Chinese Taiwan's stainless steel leader Yusco reported consolidated revenue of NT$3.69 billion for May, up 37.3% YoY and 21.6% MoM, its highest level since November last year, driven by seven consecutive months of stainless steel price increases. Cumulative revenue for the first five months reached NT$14.95 billion, still down 7.8% YoY. Supported by overall market improvement and elevated raw material costs, Yusco raised June prices for its benchmark 304 hot-rolled and cold-rolled coils by NT$2,000/ton, bringing the two-month cumulative increase to NT$6,000/ton. Downstream inventory replenishment activity continues to strengthen full-year business prospects.

Chinese Taiwan's stainless steel sector showed a broad recovery in May, with export volumes rising 22% MoM to a yearly high of approximately 77,000 tons while export pricing climbed to its highest level in over a year, confirming international buyers' acceptance of consecutive stainless steel mill price hikes. Incoming shipments fell below recent monthly thresholds, easing market disruption from cheap foreign materials. The turnaround marks an end to a prolonged industry downturn dating back to 2023. With seven consecutive months of domestic price increases and strengthening global demand, markets are expecting a substantial improvement in corporate earnings ahead.