As the stainless steel market finally achieves its long-awaited price target of 14,000 yuan per ton, the reality proves far more complex than simple celebration. The recent breakthrough in cold-rolled stainless steel prices has raised critical questions about market absorption capacity and sustainable demand.
On January 15, 2026, Foshan market reports confirmed that 304 cold-rolled prices officially reached the 14,000 yuan/ton benchmark following consecutive 400 yuan increases by major producers Tsingshan Group and Xiangshui Delong. The new prices were offered as January futures contracts pending approval, creating an immediate 100 yuan/ton inversion compared to spot market prices hovering around 13,800 yuan/ton.
Market analysts observe that while cost factors continue to support higher prices, the rapid appreciation appears to have outstripped downstream demand capacity. The significant price jump has created immediate pressure on end-users, potentially triggering procurement delays or alternative material sourcing strategies that may suppress overall transaction volumes.
Industry participants widely acknowledge that current terminal demand remains insufficient to sustain these elevated price levels. The disconnect between production costs and consumption capacity suggests imminent correction pressures, requiring time for market digestion of the recent price movements.
Long-term price trajectories will ultimately depend on fundamental supply-demand rebalancing. Market watchers advise manufacturers and distributors to maintain flexible operational strategies while closely monitoring inventory levels, production adjustments, and consumption patterns across key application sectors.