Since 2024, escalating US tariffs have placed mounting pressure on China’s stainless steel exports, particularly undermining the competitiveness of Chinese products in the American market.

 

LME’s nickel prices surge on Apr 14, driven by weaker US’ dollar, tariff adjustments

 

The nickel futures at the London Metal Exchange (LME) went up greatly by US$238 and closed at US$15,307/ton. During the same day, the spot price also soared by US$229/ton to US$15,096/ton. During the same day, the inventory monitored by LME reversed and decreased by 120 tons to 204,372 tons.
 

Nickel prices continued to rise, driven by a weaker US dollar, recent adjustments to US tariffs, and improving market sentiment. The US March Producer Price Index (PPI) increased by 2.7% year on year, while China’s strong export performance in March further supported the upward trend. Although nickel ore costs remain supported, market participants noted that high refined nickel inventories could lead to short-term price strength with potential volatility.

 

 

Rising US tariffs challenge China’s stainless steel export growth

 

Since 2024, escalating US tariffs have placed mounting pressure on China’s stainless steel exports, particularly undermining the competitiveness of Chinese products in the American market. The latest round of tariff increases in 2025 is expected to further strain key export categories such as kitchenware.

 

 

Despite these challenges, exports remain critical for China in addressing domestic oversupply. In 2024, the country’s net stainless steel exports surged by 62.7% year on year, reaching 3.167 million tons. Notably, exports to the US rose by 18.7%. However, recent tariff hikes may reverse these gains, with the potential for order losses already looming.

 

The impact extends beyond stainless steel. Electronics and machinery, important downstream sectors that rely on steel, could also be affected. As tariffs rise, these industries risk losing their edge, further dampening overall export performance. For China’s domestic market, rising costs and a well-supplied market are likely to make the stainless steel market negative. To navigate growing external uncertainty, China’s stainless steel industry must adapt its strategies to maintain competitiveness and support export stability.

 

Tsingshan’s high-strength stainless steel sales close 400,000 tons, more adoption expected

 

Tsingshan Group’s annual sales of high-strength stainless steel have reached nearly 400,000 tons, according to Dr. Laizhu Jiang, President for Research and Development Centre at Tsingtuo Group. As more manufacturers in China follow, the application of these stainless steels is expected to grow in the whole industry.

 

 

Tsingshan’s nitrogen-containing QN and QD series offer high strength and corrosion resistance at a lower cost by reducing nickel and molybdenum content. Despite traditional challenges in formability, these steels are now used in Maersk containers, Midea dishwashers, and Li Auto fuel tanks.

 

Dr. Laizhu Jiang said Tsingshan focuses on affordable, durable, and sustainable stainless steel through collaborative innovation, contributing to the high-quality development, green and low-carbon development of the stainless steel industry.