The stainless steel market is rebounding as Indonesia, the world's top nickel source, prepares to cut nickel ore output by one-third next year to 250 million tons, limiting supply from the world’s largest reserve holder.

In addition, China will implement export license controls on steel products, including stainless steel, in 2026, which may reduce the flow of low-priced products that previously strained global competitors. These constraints have already pushed LME nickel prices to US$15,200/ton on December 22.

Moreover, Indonesia Tsingshan raised its stainless steel hot-rolled coil prices three times this December, adding US$90/ton in total.

With reduced global supply and rising costs, Taiwanese stainless steel manufacturers are expected to announce higher prices for January. After a two-year downturn, these combined supply restrictions offer a clear path toward price stability and industry recovery.