It is reported that due both to nickel price drop and relatively high traders held stock, the major Chinese stainless steel makers have declared to cut 10% to 20% production in December 2007 while opening ex work price flat. In contrast, the western markets are seeing rising stainless price.

As per report among Chinese producers, Taigang announced to cut 10% to 20% nickel base CR stainless, Baoxin Stainless and ZPSS scissor 10% to 15%.

The production cut move has actually started from this summer. However in November 2007 the market price of CR stainless steel in Wuxi down by CNY 2000 per tonne to CNY 3000 per tonne with nickel dropping from USD 14 per lb to USD 15 per lb.

The report noted that the stainless buyers only need to make up what's lacked and require a small volume of the resource, while the producers' cut move also means to help the traders knock down the stock.

In contrast, the EU market is seeing lead time delayed from 3 to 4 weeks to 6 to 8 weeks and the price for nickel CR sheet also rising some CNY 100 per tonne to CNY 200 per tonne; the US market spots some USD 100 per tonne hike. It's calculated the stainless steel price is to further increase before coming of the New Year in the west.