12 April 2023 – Chinese spot market prices for stainless steel rose significantly today – some grades went up by more than 4%. Nickel prices on the SHFE also went up by about 3%. Market sources expect further price increases. And will Indonesia get its own nickel index?
Chinese stainless steel prices rise significantly
Chinese spot market prices for stainless steel rose today, Wednesday, in some cases significantly. For 304 coil, the average price went up by more than 4%. For 316 coil by up to 1.5% and for 201 by more than 1%. Stainless steel scrap also saw a price increase of up to 3% depending on the grade.
According to information from market sources in China, demand for stainless steel had picked up again recently. It is also currently assumed that prices will continue to rise.
SHFE Nickel Futures Rise
The futures for nickel on the SHFE have increased by up to 3% today. Yesterday, nickel on the LME had already risen by about 2.5%.
Will Indonesia get its own nickel index?
Global Commodities Holdings Limited (GCHL), a UK based market data provider, plans to launch Indonesian nickel indices, which may prove to be a game-changer in the nickel market. The initiative aims to increase transparency and improve price discovery for the metal, particularly as Indonesia emerges as a key player in the global nickel industry. As demand for nickel rises due to the growth of the electric vehicle (EV) and renewable energy sectors, establishing a reliable pricing mechanism is essential for market participants. The new indices may facilitate better risk management and support more informed decision-making for traders, miners, and investors.
Whether this is really a game-changer remains to be seen. Other service providers have also announced alternatives to the LME, but little has happened so far.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
