SHANGHAI Stainless steel mills in China have cut their bids for November nickel pig iron (NPI) after nickel prices fell on the London Metal Exchange.
Medium-sized stainless steel producers, including Tsingshan Steel Group and Zhangjiagang Pohang Stainless Steel Co. Ltd., put the latest bid price for benchmark high-grade nickel pig iron (with a nickel content of 10 to 15 percent) at 1,170 to 1,200 yuan ($187 to $192) per nickel unit, including delivery, sources told AMM sister publication Metal Bulletin, down 10 to 20 yuan ($1.60 to $3.20) from last month.
"Due to weak LME nickel prices, as well as bearish downstream demand, Im worried that spot prices for NPI will continue to lose ground in the near term," a trader in Shandong said.
Market sentiment weakened in October after nickel prices fell more than 12 percent, with LME three-month nickel ending the month at $16,275 per tonne, down 12.5 percent from $18,600 at the beginning of the month. The metal ended Mondays official session at $15,855 per tonne.
A version of this article was first published by AMM sister publication Metal Bulletin.