Global nickel prices have just seen slight fluctuations in the past week. On December 1, the three-month nickel price at the London Metal Exchange (LME) closed at $17,150/mt, while total nickel inventory at the LME was 91,074 mt.
In the past week, the stainless market in Foshan in China has been mostly stable, with some slight fluctuations in prices. Overall, there has not been any strong purchase activity on the downstream side and demand is generally slack. With the influence of production costs, the price of stainless steel has significant support. In the local market in Wuxi, steel mills have started to purchase material and prepare for next month's production. Prices in this market have seen some small fluctuations, with slight increases or decreases. Currently, spot prices are already below cost price and so traders do not want to reduce prices further.
As traders in China's stainless steel market will be under pressure to repay loans in December, they may find themselves obliged to cut prices in order to bring in cash. However, current prices are considered to be almost at bottom levels. Market observers suggest that traders should proceed with caution in the short term. Local stainless steel prices in China can be viewed in the SteelOrbis price reports section.