In early April 2025, the global stainless steel market was rocked by two major policy shifts: on one side, U.S. President Donald Trump announced a new wave of tariffs on imported stainless steel products, aiming to protect domestic manufacturers; on the other side, China officially launched a regulatory policy that effectively bans “under-the-table” (buy-on-behalf) export practices, especially in the stainless steel sector. These dual shocks have triggered sharp price fluctuations, forced trade route realignments, and accelerated the restructuring of global supply strategies.

Below is a comparison of Chinese domestic stainless steel prices before and after the policy changes (unit: Yuan/ton):

While the tariff announcement caused an expected dip due to shrinking U.S.-bound demand, the greater impact came from China’s restriction on informal export channels, which historically enabled many smaller traders to ship products abroad without proper documentation or export qualifications.

"Buy-on-behalf" exports—where unqualified trading firms export goods under another company's name—have long been common in China’s stainless steel export model. With the government now strictly banning such practices:

• Traders without valid export licenses will lose their ability to ship overseas;

• A significant portion of low-price products will remain stuck in the domestic market, worsening price competition;

• Qualified exporters with compliance capabilities will gain greater influence, leading to market consolidation.

For Buyers with High Dependency on Chinese Stainless Steel:

• Immediately verify whether your supplier has proper export qualifications to avoid clearance issues;

• Shift procurement towards larger, established exporters with a strong compliance track record;

• Prepare to benefit from market shakeouts, which may improve pricing leverage with top-tier suppliers.

For Buyers in Europe, the Middle East, and Neutral Markets:

• Take advantage of temporary low Chinese prices to lock in short-term contracts;

• Consider using third-country transshipment hubs, such as Thailand or Vietnam;

• Ensure payment and customs routes are optimized for risk mitigation.

For Multinational Procurement Teams:

• Conduct a compliance-based supplier audit across all sourcing markets;

• Explore setting up regional sourcing hubs in Malaysia, Indonesia, or the Middle East;

• Strategically reallocate supply ratios based on U.S. tariff and China policy impacts to maintain global continuity.

Trump’s tariff measures and China’s export crackdown are jointly reshaping the global stainless steel landscape. While short-term price volatility is inevitable, the long-term trend will favor transparency, compliance, and supply chain consolidation.

For global stainless steel buyers, this marks a pivotal moment—not just a challenge, but a chance to upgrade supplier networks, secure long-term cost advantages, and adapt to a new era of regulated trade.

Note: 
The prices listed above pertain to 304-grade stainless steel CRC, HRC, or scrap. In China, stainless steel benchmarks are based on Hongwang's 304 CRC and Tsingshan's 304 HRC, which reflect the spot prices in Wuxi, East China. For India, the pricing formula is: import price = local price x 1.085 (8.5% tariff) + 50 (clearance fee).

The price data is sourced from:

• https://www.mysteel.net