A two-day snapshot of China’s stainless steel spot market in the week of May 27, covering nickel price movements, export trends.
Nickel Prices Spike, Then Pull Back
On the night of May 27, nickel futures saw a sharp single-day jump. Shanghai nickel rose 1.44% to RMB 144,030 per tonne, and LME nickel climbed to USD 19,010 per tonne. Both moves lifted market confidence. However, the gains did not last. By May 28, prices had reversed. Shanghai nickel fell 0.48% and LMB nickel dropped 0.63%, giving back nearly all of the previous day’s gains.
The price movement quickly passed through to the physical market. On May 27, mills in Foshan raised their 304 cold-rolled coil prices by RMB 50 per tonne. The following day, mills in Wuxi followed suit. Zhangpu and Yongjin raised prices by RMB 100 per tonne to RMB 15,200, while Beicai and Hongwang raised prices by RMB 50 to RMB 14,850. After both markets adjusted, the price gap between the two regions closed to zero. One thing worth noting is that the stainless steel futures contract (SS) still edged up 0.23% to RMB 14,985 per tonne, even as nickel pulled back. This suggests that stainless steel supply and demand conditions are starting to move more independently from nickel prices.
That said, not all signals pointed upward. The price gap between Zibo and Wuxi widened from RMB -50 to RMB -100 per tonne, which shows that demand in inland markets remained soft. On top of that, 2205 duplex stainless steel heavy plate dropped RMB 200 in a single day, pointing to continued weakness in demand for higher-grade products.
Exports Drop Sharply, Domestic Demand Holds the Market Up
To understand these short-term price moves, it helps to look at the bigger picture. In the first quarter of 2026, China’s stainless steel exports fell significantly. Total exports from January to March came in at just 802,900 tonnes, down 34.5% year on year. Net exports shrank as well, with March net exports at only 174,000 tonnes, a 49.1% drop compared to the same month last year.
Several factors contributed to this decline. Global trade demand has slowed down, and trade barriers have added further pressure. The U.S. Department of Commerce completed its third sunset review of anti-dumping and countervailing duties on circular welded austenitic stainless steel pressure pipe from China and decided to keep those measures in place. This means Chinese exporters in that product category will continue to face high tariffs for the foreseeable future.
With export channels under pressure, inventory levels at home have risen. As of May 21, total stainless steel inventory in the Wuxi market stood at 589,700 tonnes, which remains high. At the same time, production has not slowed down to match. According to Mysteel, 43 domestic stainless steel mills produced 3,679,500 tonnes of crude steel in March alone, up 36.53% from the previous month. Total supply in Q1 was still higher than the same period last year. With supply outpacing demand, any price recovery in the near term is likely to be limited.
What This Means for Decorative Tube Buyers
Grade 304 cold-rolled coil is the main raw material used to produce decorative welded tubes, such as A554 tubes. In the two-day period covered in this update, coil prices in Wuxi rose by RMB 50 to RMB 100 per tonne. Raw material cost increases like this typically work their way into tube mill pricing within one to two weeks.
Looking at the broader picture, domestic inventory remains high and supply pressure has not eased in any meaningful way. Because of this, the recent price recovery may not hold, and the market is likely to stay choppy in the short term.
For buyers in architecture, furniture, and sanitary ware, demand for A554 tubes has stayed relatively steady. China continues to offer a wide range of sizes and remains competitive on price for this product category. However, because raw material prices are moving around, quoted prices tend to have shorter validity windows at the moment. Buyers are advised to check the validity period when requesting a quote, and to plan orders in line with their own project timelines.
We publish regular market updates to help our customers stay informed. If you have questions about current pricing or lead times for A554, A269, or A270 tubes, feel free to reach out to our team directly.