Taiwan’s stainless steel producers and downstream users are locked in tough price negotiations after a wave of recent cost increases.

Last week, local mills announced a price hike for 304 hot-rolled and cold-rolled products for the December delivery. The pressure intensified this week when Indonesia Tsingshan raised its price for hot-rolled black coil.

Mills said that rising import material costs, the depreciating New Taiwan dollar, and global supply issues, including a brief shutdown at POSCO and delays in India’s BIS certification rules, necessitated the price adjustments. They saw these factors as indicators of possible market improvement.

However, weak demand is limiting the ability of downstream customers to accept the increases. With circulating prices for 304 cold-rolled coils holding steady, buyers are hesitant to commit to large orders at the new rates. At present, mills are facing pushback from buyers, and clear information about order quantities is expected to become available next week.