It is reported that the nickel spot prices at LME keep surging by over 10% from early August 2012 up to USD 18,000 per tonne at present, bringing the market confidence for the global stainless steel market.

Accordingly, the Chinese stainless steel prices finally rebound for October with the increases of CNY 1,000 per tonne on stainless cold rolled coils and CNY 300 per tonne on stainless hot rolled coils in domestic market, according to Taiyuan Iron & Steel Group, the largest stainless producer in China.

However, market sources indicate that the stainless steel prices would be expected to go up mildly with negotiable space because most buyers concern the QE3 effect on future steel market even though the inventory of stainless steel remains deficient in downstream and steel processing makers.

Meanwhile, the Taiwanese stainless steel mills, Yieh United Steel Corporation and Tang Eng are expected to hike their domestic prices by nearly TWD 3,000 to TWD 4,000 per tonne for October 2012 due to high costs on LME nickel prices.

The increasing level will depend on the average nickel prices until the end of September 2012.

Source - www.yieh.com)

(www.steelguru.com)