It is reported that global economic downturn has impacted stainless steel market, dried up its demand for nickel and market participants are in hot discussion how long will the market winter last.

The report presented by Mr Shao Lei analyst at Mysteel said that though the worldwide economic turmoil has impacted physical economy, but the market is still confident about China's consumption, and Beijing has hammered out stimulus package plan to boost domestic demand as well.

Mr Stephen Barnett from the Nickel Institute said that if Chinese economy continues to grow at the 8% to 10% level, then that drives demand. From the long run, the global sustainable economic development will also push up nickel consumption.

Mr Dale Rogers president of Albidon believe that the market winter will spur nickel producers to improve the product quality and lower production costs in the coming months.

The solid demand from China, India and other Asian countries coupled with no attracting alternatives made market insiders believe that price for nickel in 3 years later will be much higher than now.

Though, nickel price has shown sign of stabilizing after rounds of falls, but inventories has not reduced due to the short term effects brought by the hedge funds and invests from large organizations. Domestic spot nickel price also vibrates at low level, with very few motives for the price rebound.