Nickel prices close to nine month high because of good demand for stainless steel

Nickel prices were withdrawn on Wednesday, but they remained near the nine month high. Health needs from China's stainless steel mills, and the decline in the supply of nickel ore in Philippines, play an important supporting factor.

The benchmark price fell to 1% nickel 11595 U.S. dollars / ton; higher prices failed to break through by a wave of profit taking. Nickel prices hit a new high of $11885 / ton since November last Tuesday. Nickel prices have risen by more than 15% since the beginning of this year.

"China and other local demand for stainless steel is surprisingly strong, in addition to lithium ion batteries nickel consumption good news also provides support, Societe Generale (Societe Generale) analyst Robin Bhar said.

Nickel inventories at the London Metal Exchange (LME) warehouse have increased by 11000 tons since August 11th, which could put pressure on prices. However, traders say the nickel metal used for transportation - that is, "cancelled warrants" - at 36% or more, proves that the LME market is still relatively tight.