Some small fluctuations have been observed in Chinese domestic stainless steel prices in the past week, partly influenced by fluctuations in nickel prices. Meanwhile, supply volumes have declined somewhat in the Chinese stainless steel market.
In the past week, global nickel prices first moved up before starting to trend in a downward direction. On August 6, the three-month nickel price at the London Metal Exchange (LME) closed at $13,730/mt, while LME nickel inventory on the same date totaled 204,906 mt. The three-month nickel price at the LME reached a peak level of $14,040/mt in the past week, while its closing level on August 6 indicated a decrease compared to one week earlier.
Prices of 304 series stainless steel products in China have risen slightly during the past week on the back of shortages of supply. On the other hand, domestic prices of 400 series stainless products have softened as they were catching up with the larger prices decreases recorded previously for other stainless products in the domestic market. It is believed that supply shortages will provide a certain degree of support for the overall domestic price trend, while demand and trade volumes are not as good as expected. Once supply volumes return to normal, prices may soften. It is thought that stainless steel prices in China will see further small fluctuations in the coming week.