It is reported that the stainless steel inventories in China's Wuxi Market in Jiangsu province have increased as traders and end users hold orders on hand on dropping nickel prices. Also, this is the first rise since the past three months. According to data, the stainless steel stocks at 26 warehouses in Wuxi market increased to 217,531 tonnes on August 15th 2011, increased by 4.9% MoM from that in early May.
It is analyzed that users were observing if the nickel prices would stabilize and the demand was weak due to summer in China; thus, the stainless steel inventory surged. Meanwhile, it is known that the nickel prices in three months delivery at LME has remained at around USD 21,000 per tonne for a week