Chinese stainless steel market sees increases as nickel prices rise

The Chinese stainless steel market has witnessed increases in the past week amid improvements in nickel prices.    
 
Global nickel prices have indicated a rebound during the past week. On September 11, the three-month nickel price at the London Metal Exchange (LME) closed at $16,783/mt, while LME nickel inventory on the same date totaled 120,810 mt.
 
Chinese domestic stainless steel prices have increased in the past week, especially for 300 series. According to traders, demand and trading volumes have also indicated improvements. However, new supplies are expected to arrive in the market in the coming period and so increased inventory levels may limit the upward movement of local stainless prices. Market insiders believe that domestic stainless steel prices in China will continue their uptrend amid stronger nickel prices, but that high stock levels may exert a restricting influence.