Increases in nickel prices may be reflected in stainless steel market

Nickel prices at the London Metal Exchange (LME) have been trending upwards since early July, with prices now having reached the level of $14,000/mt. Meanwhile, stainless steel producers, which previously had been reducing their prices over a long period, have started to either keep their prices stable or revise their prices upward in line with the increases in nickel prices. In late June, stainless steel prices in the local Chinese market had fallen to their lowest levels of the last four years. However, Chinese mill Baosteel has recently announced that it will keep its August rolling stainless steel prices stable as compared to its previous levels. Other Far Eastern mills and European producers, which are likely announce their new list prices in early August, are expected to keep their offers stable or opt for slight increases.
 
On July 25, nickel prices at the LME closed the day at the level of $14,050/mt for cash settlements, indicating an increase of $500/mt month on month.
 
In the meantime, stainless steel demand in the Turkish domestic market has failed to register any notable improvement. Far Eastern offers to Turkey for 304/2B stainless steel cold rolled coil (CRC) of 2.0 mm thickness are ranging at $2,350-2,450/mt CIF Istanbul. Prime quality materials from Chinese and Taiwanese suppliers' ready stocks have been preferred in the local Turkish market due to their price advantage and quick delivery options.