Fluctuations in nickel prices make stainless steel makers nervous

LME nickel price hit a 7-year high to US$20,500/ton last week due to supply shortage, greatly boosting the stainless steel market performance. According to the market of stainless steel, some of the market participants believed the stainless steel demand could further grow in the future.

The demand for electric vehicle batteries and stainless steel significantly increased. LME inventories continued to decline, which led to a shortage of nickel.

However, it fell by 3% on September 13, triggering the traders’ concern about the unstable stainless steel market. In Taiwan, most of the stainless steel buyers decided to watch and see, mainly because of the rainy weather in the domestic recently.

Although the global nickel price showed fluctuate in these few days, most of the market participants were still optimistic about the future demand, which could support the market price to continue growing.

Regarding the fluctuations in the LME nickel price, whether there are people who intervene artificially, has attracted the market’s attention.