During the year, LME stocks were trading at around 382,000 tonnes, while inventories fell to 84,000 tonnes from the previous year's high level of 93,000 tonnes. However, despite the decline in domestic inventories is greater than the LME nickel, Shanghai nickel trend is significantly less than the nickel: as of June 17 at 17:00, Shanghai nickel main year decline of 14.12%, LME annual decline of 10.99%, the short term, Contract fell 8.01%, Lun nickel fell 5.34%.

SMM that the inner disk is weaker than the main reason for the downstream consumption is weak.

Stainless steel accounted for 84% of domestic nickel downstream consumption, as the largest downstream of the domestic nickel, its consumption situation is good or bad directly related to the strength of domestic nickel prices. 2017 at the beginning of the domestic stainless steel inventories continued to increase in March at the end of Foshan, Foshan, the total inventory of 390,000 tons, the historical high. Due to bearish outlook and forced financial pressure traders to rebuild inventory enthusiasm is low, stainless steel finished product inventory pressure gradually transferred to the steel, and stainless steel prices since the beginning of 16950 yuan / ton unilateral down to June 7 has fallen to 12,700 yuan / ton , Steel orders to reduce. Beginning in late April, a number of domestic steel mills gradually implemented production cuts.

According to SMM research and understanding, the European market, the world's second largest stainless steel manufacturer Ampang stainless steel orders have been received in September! Production is significantly better than domestic.

Into June, Delong stainless steel is about to put into production, will drive nickel demand, short or good Shanghai nickel. However, in the case of high product pressure, the latter part of the stainless steel inventory or worse, the period of nickel weak outside the strong situation is difficult to have a big improvement.