The stainless steel base price in EU and USA may stay at a steady level for next few months till summer due to mills’ increasing demand and the stock supplementing at distributors.

The fluctuation of nickel price remains a key factor affecting the stock level in the market. The steel stocks have reached the record high over the past seven years to 40,000 tons.

According to the forecast of Australian Bureau of Agricultural and Resource Economics (ABARE), the nickel consumption is expected to increase by 6 percent to 1.5 million tons early next year and this helps the stainless steel price to bounce back from current falling trend.

However, due to the start-up of new mining projects, the output of nickel may be expanded fast which enlarge the stock level. It is said that the price of stainless steel grade 316 will be most affected by the development of nickel changes and this also motivates buyers to look for other substitutes for this stainless steel grade.

The weak steel demand in EU and USA market plus slow global economic sentiment also result in a general lower stainless steel transaction price level than 2007 in 2008.