Stainless Steel Profiled Materials Raw Material Market Supply Dynamics 

Recent supply-side changes in China's stainless steel raw materials are directly impacting the cost structure of profiled materials manufacturers.

1. Nickel Prices High and Volatile, Raw Material Cost Support Remains Firm

Mysteel monitoring shows that on July 17, Shanghai electrolytic copper was quoted at 104,205 CNY/ton, down 280 CNY week-over-week; A00 aluminum was reported at 23,220 CNY/ton, slightly up 50 CNY. As the core alloying element of stainless steel, LME nickel prices have maintained a 16,500-18,200 USD/ton range since Q2 2026. Indonesian nickel pig iron (NPI) new capacity releases have suppressed nickel prices, but refined nickel cost support for 304 and 316L stainless steel remains solid. Major domestic steel mills' 304 stainless steel cold-rolled ex-factory prices remain in the 14,500-15,500 CNY/ton range this month, with 304 waste stainless steel spot prices at 15,500 CNY/ton (China Metallurgical News, July 20). High raw material prices continue to transmit costs to downstream profiled materials processing enterprises.

2. Ferrochromium Supply: South Africa Shipments Recover, Resources Marginally Easing

In the high-carbon ferrochromium (FeCr) market, after South African power shortages eased in Q1 2026, ferrochromium smelter operating rates steadily improved and port chromium ore inventories rebounded significantly. Turkey 42% lump ore domestic delivered price retreated from 3,200 CNY/ton at the beginning of the year to around 2,850 CNY/ton, with ferrochromium cost support loosening somewhat. However, large northern stainless steel mills continue to rely mainly on long-term contract procurement, and the spot market is not well-supplied. For profiled materials manufacturers, although ferrochromium delivered costs have decreased slightly from the beginning of the year, absolute prices remain at medium-to-high levels in recent years.

3. Tight Supply of Waste Stainless Steel, Limited Substitution Effect

Industrial stainless steel scrap output has declined year-over-year (affected by overall weak manufacturing orders), combined with widespread hoarding by traders, 304 waste stainless steel circulating resources in Zhangjiagang and Wuxi are tight. The market presents a "dual weak supply and demand" pattern. Steel mills' reliance on waste stainless steel has declined, with more转向 nickel pig iron plus ferrochromium traditional smelting routes.

4. Transmission to Profiled Materials Enterprises

In the short term, the raw material side maintains a "nickel stable, chromium loosening" pattern, with limited fluctuation in 304 and 316L stainless steel wire rod procurement costs. Profiled materials manufacturers generally adopt "raw material linkage, order-by-order negotiation" pricing strategies. Customers with shorter order cycles are more susceptible to raw material price fluctuations. It is recommended that downstream users lock in orders with longer raw material price cycles (one month or more) when purchasing profiled materials, V-shaped wire, and wedge wire products to effectively reduce procurement cost volatility risk.