Taiwan’s stainless steel prices were estimated to stop falling and keep flat for September for four reasons.

First, Indonesia might impose a 5% export tariff on nickel pig iron, and Tsingshan Holding Group is negotiating to sell part of the stakes in its integrated production lines in Morowali Industrial Park in Indonesia, with an annual capacity of 500,000 tons, both of which help to solve the oversupply of Indonesia’s ferronickel production and to stop competition of reducing prices amid high production costs in China.

Second, the current price in Taiwan closes that in Indonesia and China, which lets Taiwan’s local downstream buyers have more willingness to buy for stocks.

Third, in spite of not so much demand, buyers who had previously stopped importing began to stockpile due to the bottomed-out prices and inventories.

Fourth, the Taiwan dollar continues to depreciate against the US dollar, which increased the cost of imported raw materials for steel mills.