The nickel price is still weak though London Metal Exchange (LME) nickel stocks continue to decline. Stainless steel demand is currently strong both in terms of restocking activity and real consumption, while a weakening of demand could be seen in the second quarter and second half of the current year. Meanwhile, Brazil is expected to step up work on nickel projects and to increase exports, eventually reaching a 130,000 mt annual nickel production capacity. Furthermore, many HPAL (high pressure acid leach) projects on the way. In the next few months, the number of the projects will increase. More new nickel expansion projects will emerge in the next few years, which will definitely push the market to oversupply.
LME nickel stock(mt) vs. nickel price($/mt)
Stainless steel prices have been fluctuating on a daily basis, though there is no big change week on week. Overall,300 series prices have risen $28.1/mt, while 400 series prices are unchanged from last week.
300 series vs. 400 series market price ($/mt)
304/2B and BA hot rolled prices have remained unchanged in the Wuxi market, with mainstream prices at $3,886.3/mt and $4,070.7/t respectively. 430/No.1 and 2B hot rolled prices from Taigang have been stable recently, with the current prices of 430/No.1 at $1,050.4/mt and the 430/2B price at $1,812.6/mt. In contrast, 201/2B in the Foshan market has indicated an increase of $15.4/mt from last week.
LME nickel stock(mt) vs. nickel price($/mt)
Specification |
Region |
Producer |
Price (RMB/mt) |
Price ($/mt) |
Change w-o-w |
201/2B |
Foshan |
Guangzhou lianzhong |
13,600 |
2,089 |
100 |
201/No.1 |
Foshan |
Guangzhou lianzhong |
10,800 |
1,659 |
0 |
304/2B |
Wuxi |
Ningbo baoxing |
25,300 |
3,886 |
0 |
304/BA |
Wuxi |
Ningbo baoxing |
26,500 |
4,071 |
0 |
430/No.1 |
Wuxi |
Taigang |
9,800 |
1,505 |
0 |
430/2B |
Wuxi |
Taigang |
11,800 |
1,813 |
0 |
Transaction activity has been going well this week, compensating for the low prices of some traders to a certain extent. The nickel price has been fluctuating without a clear orientation, while the stainless price is expected to remain steady and the market may indicate some recovery in the short term. In order to control inflation, the Chinese government is maintaining its tight monetary policy, which does not boost the prospects for a rebound in the stainless steel market in the long term.