SHANGHAI, Nov 16 (SMM) - In October, ferronickel prices fluctuated upwards amid improving market demand. With the depletion of stainless steel inventory and the recovery of end demand, the prices of stainless steel kept rising after the National Day holiday. This encouraged steel mills to gear up their production, boosting the demand for ferronickel. Chinese ferronickel imports dropped 8.17% MoM in September as output cuts or closures of overseas smelters tightened its supply. The supply of Indonesian NPI, which is a substitute for ferronickel, was also tight, sending ferronickel prices higher. Stainless steel mills are expected to maintain high production, thus the strong demand for ferronickel will sustain. However, considering that there may be limited room for stainless steel prices to rise in the traditional off-season towards the end of the year, the upside room of ferronickel prices will also be limited. Given the insufficient ferronickel supply and fears that Indonesia would hike ferronickel and NPI export tariffs soon, ferronickel prices will receive solid support.