Nickel ore costs continue to climb due to Indonesia's tax policies and persistent rainy conditions in Sulawesi, which tighten supply and push up ferronickel prices. With high stainless steel production capacity and strong demand for ferronickel, recent bulk purchases by downstream manufacturers have also supported price increases in China’s stainless steel market.

As of March 19, the price of hot-rolled stainless steel coil 304 No.1 hiked by more than 4%, while cold-rolled stainless steel coil 304 2B rose by nearly 3%.

Market participants said that rising demand has driven order volumes, but resistance to high prices is growing, leading to more cautious purchasing and a slower pace. Stainless steel prices are expected to have modest increases.