Taiwan’s stainless steel prices surged recently. The price of 304 cold-rolled coils rebounded to the NT$58,500/ton level. This rally, totaling a NT$4,000 increase over the past month, was due to rising nickel costs and higher quotes from Indonesia's Tsingshan.

LME nickel prices nearly touched US$18,000 yesterday, hitting a 15-month peak, while Chinese futures also rose. However, in spite of these cost-driven hikes and low downstream inventories, actual trading remains sluggish. Buyers are avoiding price-chasing due to the limited working days in January and February. Market participants expect a stable but volatile trend in the near term, as current momentum lacks strong support from real consumption.