The ongoing decline in nickel prices again contributed to further decreases in the Chinese domestic stainless steel market during the past week, though at the same time prices of certain stainless steel grades indicated sideways movement.
Global nickel prices have moved on a declining trend in the past week, especially in the early part of the week. On May 22, the three-month nickel price at the London Metal Exchange (LME) closed at $15,250/mt, while LME nickel inventory on the same date totaled 179,598 mt.
At present, domestic producers' stainless steel prices are close to cost level. Meanwhile, stainless steel production volumes are high and demand is low and so large reductions in stainless steel output volumes are expected to be implemented by domestic producers in June and July, which will help readjust the supply-demand imbalance and provide support for market prices. Due to the significant decreases already seen in the market in recent weeks, it is thought that Chinese domestic stainless steel prices will mostly follow a stable trend in the coming week, though slight downticks may also be seen for some grades.