A surge in nickel futures on the Shanghai Futures Exchange (SHFE) triggered a simultaneous rise in stainless steel prices. In spite of the traditional slow season for consumption, spot prices hiked steadily across various manufacturers. Chinese market prices for 316L hot-rolled flat products grew by 2% to 3% compared to last week, reaching a two-month high.

Low inventory levels contributed to this trend as previous buyer hesitation led to record-low social stockpiles. Although overall stainless steel output increased this January, the growth centered on 200 and 400 series products. In contrast, production of the 300 series actually declined, tightening supply further. These combined factors created a strong upward trend for stainless steel prices despite the quiet seasonal demand.