Stainless steel prices rise in China amid higher nickel prices

The nickel price on the London Metal Exchange (LME) exceeded $24,000/mt in the past week. The weakness of the US dollar pushed up bulk commodity prices last Tuesday and the LME nickel price has maintained its strength. LME nickel stocks are reported at 103,098 mt, up 1,392 mt week on week. China-based Jinchuan Group twice adjusted its ex-works price for nickel in an upward direction, with its price reaching $27,640/mt, and this has increased confidence levels in the domestic nickel market. On the demand side, the domestic stainless steel market has not seen a great number of deals in the spot market, which limits the room for upward movement of nickel prices in China in the short term.

Nickel is offered at $28,090/mt in the Chinese domestic market, with imported nickel at around $27,989/mt.

LME nickel stock (mt) versus nickel price ($/mt)

200 series stainless steel from Lianzhong has remained unchanged week on week in the Foshan market. 304/2B from Baoxin has risen by $124/mt week on week to $3,649/mt and 304/No.1 from Baoxin has risen by $108.7/mt week on week to $3,804.3/mt. Meanwhile, 400 series from Taigang has increased by $15.5/mt week on week.

300 series versus 400 series market price ($/mt)

With nickel prices increasing, domestic stainless spot market prices in China have continued to move up. Stainless traders and end-users have begun to restock from last week. There is a shortage of certain stainless steel products in the market because steel mills are not selling their materials in large quantities. Additionally, there will be a new round of power cuts around Wuxi, and this will likely support the upward movement of local stainless steel prices in the coming week.