SHANGHAI, Sept. 24 -- China's Jinchuan Group has cut its benchmark nickel price by another RMB 2,000/mt (USD 293/mt), its fourth cut this month, as the market weakens further.
Jinchuan's new benchmark price is RMB 131,000/mt (USD 19,180/mt), from RMB 133,000/mt last week.
This takes the total price cut to RMB 14,000/mt so far this month for China's largest nickel producer.
A trader in Shanghai offering Jinchuan material at RMB 133,000/mt in the spot market said it was unwilling to cut its offer as costs were high and trade slow.
The weakening stainless steel market has meant that mills are not re-stocking ahead of the week-long national day holiday starting October 1, said an analyst in Shanghai.
"The domestic nickel market remains bearish due to a lack of demand support, while the persistently softening stainless steel market still puts pressure on nickel," she said.
Several traders said domestic nickel prices are likely to continue facing downward pressure in the near term, unless LME prices surge.
Nickel is trading at RMB 131,500-133,500/mt in the Chinese domestic market on Wednesday, down an average of RMB 6,000/mt from early this month, according to the Changjiang Nonferrous Market.
(Source: Metal Bulletin)