Global nickel prices moved down before and during the Labor Day holiday, while they have indicated a rebound during the last few days. On May 8, the three-month nickel price at the London Metal Exchange (LME) closed at $15,495/mt, while LME nickel inventory on the same date totaled 178,482 mt.
The downward movement in LME nickel prices before and during China's Labor Day holiday has caused Chinese domestic stainless steel prices to record a sharp drop during the last two weeks. In this context, some Chinese stainless steel producers decided to reduce production volumes or even start maintenance work earlier than scheduled. However, after the holiday, nickel prices indicated a significant rebound, following which domestic market players stopped reducing their prices and adopted a wait-and-see stance instead. In addition, fewer discounts were witnessed in sales transactions. It is believed that domestic stainless steel prices in China are almost at bottom levels, with prices close to mills' production cost levels. It is expected that local stainless steel prices in China will follow a stable trend in the coming week.