The nickel price on the London Metal Exchange (LME) hit $22,880/mt in the middle of the past week, declining to $22,250/mt on Monday this week. LME nickel stocks totaled 112,536 mt on Monday, down 2,580 mt week on week.
Traders are cautious in their approach to nickel prices amid the current weak demand. The strike by workers at Sudbury, a subsidiary of Vale, is about to end after agreement was reached with the workers. Accordingly, it is estimated that Vale will see a 56 percent increase in nickel output. At present, China-based Jinchuan Group's nickel price is in the range of $26,267-26,313/mt, while import nickel prices in China are reported at $26,114-26,115/mt.
LME nickel stock (mt) versus nickel price ($/mt)
Overall, the stainless steel market in China has declined in the past week because of poor demand and the weak nickel market. Ningbo Baoxing's price for 304/2B stainless has slipped by $15.4/mt week on week in the Wuxi market, while Guangzhou Lianzhong's price for 201/2B stainless has dropped by $61.5/mt week on week.
300 series versus 400 series market price ($/mt)
Specification |
Region |
Producer |
Price |
Price |
Change week on week |
201/2B |
Foshan |
Guangzhou lianzhong |
13,300 |
2,043 |
-400 |
201/No.1 |
Foshan |
Guangzhou lianzhong |
10,900 |
1,674 |
100 |
304/2B |
Wuxi |
Ningbo baoxing |
23,500 |
3,610 |
-100 |
304/BA |
Wuxi |
Ningbo baoxing |
24,800 |
3,810 |
-200 |
430/No.1 |
Wuxi |
Taigang |
9,600 |
1,475 |
-200 |
430/2B |
Wuxi |
Taigang |
11,100 |
1,705 |
-300 |
With the low season in the steel market and weak demand, Baosteel reduced its ex-work prices for steel products, after which Taigang lowered its main stainless steel product prices by $77-154/mt. Due to the lack of positive news on the raw material side and the weak demand for stainless materials, it is expected that the stainless steel market will decline further in the coming week.