In the past week, the nickel market witnessed a sharp rise after a steep fall in price. In the early part of the week, the combination of the stringent monetary policy in China, new concerns over the European debt crisis, the lowering of the US credit rating and the strengthening of the dollar led to a significant drop in price. Towards the end of the week, however, the Easter holiday, the sharp fall of LME nickel inventory, the weakening of the dollar and the general rebound in the stock and commodity market resulted in a considerable increase in the nickel market.
The price of nickel on the London Metal Exchange (LME) dropped as low as $25,260/mt and rose as high as $26,950/mt in the past week.
LME nickel stock (mt) vs. nickel price ($/mt)
300 series vs. 400 series market price ($/mt)
Meanwhile, the prices in China's main stainless steel markets are illustrated in the following table:
Specification |
Region |
Producer |
Price (RMB/mt) |
Price ($/mt) |
Change week on week |
201/2B |
Foshan |
Guangzhou lianzhong |
13,500 |
2,061 |
400 |
201/No.1 |
Foshan |
Guangzhou lianzhong |
10,800 |
1,649 |
100 |
304/2B |
Wuxi |
Ningbo baoxing |
25,300 |
3,863 |
-200 |
304/BA |
Wuxi |
Ningbo baoxing |
26,500 |
4,046 |
-200 |
430/No.1 |
Wuxi |
Taigang |
9,800 |
1,496 |
0 |
430/2B |
Wuxi |
Taigang |
11,800 |
1,802 |
-100 |
The price fluctuation in stainless hot rolled coil (HRC) was caused by the dramatic change in the price of nickel, and not by changes in demand. The nickel price increase at the end of the week might boost confidence in the market, yet most traders remain cautious about the future market trend.