Indonesia Nickel Quota Cuts Push 304 Stainless Steel Prices Higher

On February 24, 2026, China’s Lunar New Year holiday ended, and various industries gradually resumed work. The global stainless steel market ushered in a strong start. Tsingshan Indonesia once again raised its 304 stainless steel export quotation by USD 15 per ton.

Since January, domestic stainless steel, nickel pig iron, and SHFE nickel futures prices in China have risen simultaneously. If quotas are not restored later, more manufacturers may follow with price increases. This policy-driven raw material shortage is affecting and even reshaping the cost logic of the global stainless steel market.

This round of price increase originated from Indonesia’s nickel ore resource control policy implemented at the beginning of the year. Previously, after the new president of Indonesia took office, stricter resource nationalism policies were introduced. The total national nickel mining quota was sharply reduced from 379 million tons in 2025 to 260–270 million tons.

Among them, the world’s largest nickel mining area, Weda Bay (Weda Bay), had its annual mining quota cut by 71%, dropping from 42 million tons to only 12 million tons. Weda Bay is a core hub in the global nickel supply chain. The sharp reduction in mining quotas has drawn high attention from related industries regarding stainless steel production capacity.

In view of policy changes, the overall stainless steel market in Asia is currently oversupplied. Some enterprises have reduced production to relieve inventory pressure. They aim to stabilize the pricing system and market environment.

This is the first price increase after the 2026 Spring Festival. Under the dramatic changes in nickel supply policy, cost pressure in stainless steel-related industries has become a primary consideration for corporate strategy in 2026. As a source factory of modular square stainless steel water tanks, we produce food-grade stainless steel water tanks, hot-dip galvanized water tanks, insulated water tanks, underground water tanks, round water tanks, and elevated water tanks. They are widely used in building water supply, fire water storage, medical purified water, food processing, industrial circulating water, and agricultural irrigation.

304 and 316 stainless steel are the core materials for water tank panels. They feature excellent corrosion resistance, food-grade hygiene standards, strong mechanical strength, and good economic performance.

As a stainless steel water tank source supplier with 15 years of experience, fluctuations in stainless steel and nickel pig iron prices directly affect water tank pricing. To provide reliable and cost-effective customized solutions, we cooperate with domestic steel mills. While ensuring raw material quality, we stabilize product prices and minimize the impact of international metal price fluctuations on downstream industries. If you have needs in water tank design, customization, production, or installation, please contact us.