China's domestic stainless steel market has been characterized by downward movement in the past week against the background of significant declines in nickel prices.
As of the close of business on September 4, the three-month nickel price at the London Metal Exchange (LME) had declined to $13,625/mt, while LME nickel inventory on the same date totaled 213,804 mt.
Apart from softer nickel prices, the arrival of new supplies in China's stainless steel market during the past week has resulted in increased stock levels, in turn contributing to reduced support for domestic stainless steel prices. On the other hand, however, the trading volume has improved and so sentiment among local traders is currently positive. Market observers believe nickel prices will continue to trend down under the influence of macroeconomic and political developments, while stainless steel supply volumes are also increasing. Accordingly, it is thought that there is still room for further decreases in China's domestic stainless steel market in the coming week.