The London Metal Exchange (LME) nickel inventory dropped below 50,000 tons on November 22, hitting a low level. Shanghai Futures Exchange's (SHFE) nickel inventory also fell by more than 10% last week. Due to the drop in global refined nickel stocks and the maintenance of ferronickel plants in China, the oversupply of ferronickel is eased, which will support nickel prices in the short term.

According to market participants, in spite of weak market demand for stainless steel in China, the low nickel inventory was expected to uphold the short-term price trend of nickel, although the prices are prone to fluctuate greatly.