Global nickel prices have fluctuated in a slight downward direction during the past week. On May 16, the three-month nickel price at the London Metal Exchange (LME) closed at $17,000/mt, while LME nickel inventory on the same date totaled 105,630 mt.
Under pressure from costs, stainless steel producers in China are generally not inclined to further cut their quoted prices of stainless steel. While stainless steel purchases on the downstream side are slow, stainless steel producers have reduced their outputs and supply volumes. In this context, the Chinese stainless steel market has been following a stable trend, with prices indicating just slight fluctuations at low levels. Meanwhile, nickel prices in China have indicated a small downward adjustment. but confidence prevails as regards the future trend due to Indonesia's move to limit nickel exports. With the current stainless steel market characterized by high costs and low prices, profit margins are fairly tight and traders are no longer willing to cut their prices. Accordingly, it is believed that the current stable trend in China's domestic stainless steel market will last for another while.