Local Chinese stainless steel market moves up with support of cost-side increases

China’s domestic stainless steel market has continued to move on a rising trend in the past seven days.

Global nickel prices have fluctuated at high levels in the past week, and are now slightly higher compared to one week earlier. On November 15, the three-month nickel price at the London Metal Exchange (LME) closed at $11,290/mt, while LME nickel inventory on the same date totaled 365,358 mt.

While the domestic stainless steel market has maintained its upward trend in the past week, increase margins have been smaller compared to the previous week following the strong price increases already recorded in the market. Strong support from nickel prices and from other raw material prices have been the main reason for the ongoing upward trend of the stainless steel market. Meanwhile, overall stainless steel inventories are at low levels and this has also provided support for prices, though trading activity is weak since traders are reluctant to build up stocks given the higher prices. It is believed that domestic stainless steel prices may indicate some further upticks in the week ahead.

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