China’s stainless steel market stable, traders less confident

The short-term rebound in the international nickel market has halted in the past week against the backdrop of the uneasiness in the international economic situation. Concerns for the global economy has placed pressure on the nickel market. As of September 5, the London Metal Exchange (LME) nickel price stands at $20,885/mt, while LME nickel stocks total 102,408 mt. In China, the domestic nickel price is reported at $25,000/mt, while the imported nickel price stands at $24,844/mt  

LME nickel price ($/mt)

Current stainless steel market inventory in China is low, while stocks are also low at domestic mills such as Sichuan Province-based Xinan Stainless Steel and Shanxi Province-based Taiyuan Iron and Steel. Stainless steel prices in China have mostly been following a flat trend in the past week. With the nickel price softening in the second half of the past week, traders find it hard to raise their prices. Traders now have less confidence in the prospects for the domestic stainless steel market, and it is thought that domestic stainless steel prices in China will continue to move sideways in the coming week.