The prices of metals including nickel have declined sharply during the past two weeks, with the decline in LME nickel prices having a negative influence on Chinese domestic stainless steel market prices, especially on prices of 304 series materials.
Global nickel prices have declined significantly during the past two weeks. On June 19, the three-month nickel price at the London Metal Exchange (LME) closed at $14,105/mt, while LME nickel inventory on the same date totaled 185,688 mt.
Normally, after a holiday period - China's Dragon Boat Festival took place last week - there would be a surge in purchasing activity. However, the decrease in prices has caused buyers to adopt a wait-and-see approach. Over the past two weeks, the trading volume in China's stainless steel market has remained low. Meanwhile, nickel prices are expected to decline at a slower rate in the coming period. It is believed that the local stainless steel market will continue its soft trend in the week ahead