Global nickel prices have seen a slight rebound lately. On December 6, the three-month nickel price at the London Metal Exchange closed at $18,386/mt, while LME nickel inventory totaled 91,056 mt.
According to the market insiders, the rebound in nickel prices has caused some stainless steel prices in China to rise slightly - local stainless steel prices in China can be viewed in the SteelOrbis price reports section. However, most traders in China are still pessimistic as regards the outlook for the domestic stainless steel market in the coming period. Certain traders even think that, after the latest small rise in prices, the market could drop significantly. Meanwhile, trade activity remains slack. Coming close to the end of 2011, the steel mills are trying to sell as much as possible in order to bring in cash and so this may cause market prices to move on a downtrend. If the downstream side starts to replenish its stocks, stainless steel prices may receive some support. However, it appears that this is unlikely to happen in the short term.