With the strengthening of economic stimulus from the US and China, Taiwan’s upstream stainless steel supplier Tang Eng expects market conditions to pick up after the Lunar New Year, laying the foundation for development in 2025.

Tang Eng pointed out that domestic midstream and downstream inventories have dropped to a stable level, beneficial to upstream shipments.

In the first half of this year, market recovery led to an increase in output and prices of stainless steel. However, prices were weak in the second half of the year due to rising electricity prices and oversupply in China.

Relevant stainless steel suppliers were expected to benefit from the recovery of global trade and strong industrial demand in Taiwan, especially the electronic equipment manufacturing industry. The fourth quarter, the traditional peak season, was forecasted to enhance market momentum and drive upstream production capacity. However, the industry still needs time to observe changes in demand.

According to market forecasts, global stainless steel demand will grow at a compound annual growth rate of 7.29%, reaching US$228.8 billion in 2032. Tang Eng believed that the Asian market is facing challenges of oversupply and electricity prices; however, as the economy recovers, the market was expected to gradually rebound.