China’s stainless steel market experienced a significant rebound yesterday (May 11), led by a sharp rise in 316-grade products. This spike resulted from soaring molybdenum concentrate prices, which pushed ferromolybdenum production costs toward CNY 320,000 per ton. Therefore, major mills like Tsingshan and local traders increased their offers.

Supply constraints further support the market. A shortage of hot-rolled 304 resources led to a CNY 100 per ton price increase, even as overall trading remains cautious.

Raw material uncertainty continues due to tight nickel ore supplies and delayed tax policy updates in Indonesia. Although terminal demand appears weak, strong cost support and limited inventory levels prevent prices from falling, keeping the market in a high-level fluctuation phase.