Global nickel prices have indicated a slight downward trend during the past week. On February 16, the three-month nickel price at the London Metal Exchange (LME) closed at $19,830/mt, while nickel inventory at the LME totaled 97,770mt.
Apart from the weakening of nickel prices, the decline seen in the Chinese stainless steel market in the past week can also be understood as a correction of the excessive optimism witnessed in the market in the previous week. With downsteam demand remaining slack and inventory levels rising higher, many traders are now less hopeful as regards the prospects for the market in the coming period. Traders state that there are fewer inquiries compared to the corresponding period in previous years and that the trading volume is quite low. Pessimism now prevails in the market. Meanwhile, some stainless mills have reduced their prices in actual deals. In the short term, China's stainless steel market is expected to fluctuate on a weak trend.