Chinese stainless prices across all grades rose by RMB 100-400/tonne ($15-59/t) this week, reversing the price fall last week. The increase is due to production cuts by Chinese stainless mills and strengthening nickel prices, market participants tell Steel Business Briefing.

Prices of 3mm thick 304 HRC in China’s southern Foshan market rose RMB 200/t to RMB 17,800-18,000/t ($2,607-2,636/t), while those for 2mm thick 304/2B CRC increased RMB 400/t to RMB 20,000-20,200/t ($2,929-2,958/t) over the week.

Prices of 1-2mm thick 201/2B CRC were up by RMB 100/t to RMB 11,800-12,000/t ($1,728-1,757/t) in Foshan while those of 2mm thick 430/2B CRC rose RMB 200/t to 11,200-11,500/t ($1,640-1,684/t) in the week. Transactions remain sparse for 2mm thick 202/2B CRC, but market watchers place prices RMB 100/t higher at around RMB 16,700-16,900/t ($2,445-2,475/t). All prices include 17% VAT.

The market continues to be buoyed by news of Chinese stainless mills reducing production in November and December, traders say. “The cuts have resulted in less pressure from the supply side but there remains little improvement to demand,” says a trader in Guangdong province.

Three-month nickel prices on the London Metal Exchange rose close to $1,000/t over the week to finish at $17,205/10/t on 16 December.