The Chinese domestic stainless steel market has indicated downticks in prices in the past seven days, influenced by softness in nickel prices and slack activity.
Global nickel prices have fluctuated on a downward trend during the past week. On November 26, the three-month nickel price at the London Metal Exchange (LME) closed at $13,450/mt, while LME nickel inventory on the same date totaled 249,660 mt.
Trading activity in China’s stainless steel market has been sluggish, while high inventory levels and tight liquidity constitute problems for traders, who hold a negative view of the future prospects for the market. It is believed that high costs and low sales price for stainless steel will cause more stainless mills in China to reduce their production volumes. Accordingly, in the near future, supply volumes will likely decrease and market prices may resume a stable trend. For the coming week, domestic stainless steel prices in China are expected to remain on a weak trend, though decrease margins may be smaller.