Nickel prices are falling sharply. On November 18, LME nickel dropped $205 to $14,675. Stocks also increased. The downward trend continued today, with prices hovering around $14,551. This lowers raw material costs for a Stainless Steel tube factory.

304 Market: Prices Soften Amid Weak Demand
Tsingshan agents offered November-December resources. Their 304 hot-rolled strip is priced at 12,100 yuan/ton.

Market traders aligned their prices with the agent.

Material from Guangxi was offered at 11,900-12,000 yuan/ton.

Some distant futures were offered even lower.

The afternoon saw limited activity. Buying interest was weak. For wider coil, prices were 12,100-12,300 yuan/ton. High-priced materials faced slow sales. This environment allows a Stainless Steel tube company to source materials at lower costs.

201 Market: Discounts Drive Limited Sales
Tsingshan agents continued with discounted prices. J2 material was offered at 6,750 yuan/ton.

Market traders followed this price trend.

Guangxi narrow strip prices showed a 50-yuan spread.

High-priced agents faced pressure to reduce offers.

The afternoon saw buyers seeking very low-priced materials. High prices remained under significant pressure. This creates opportunities for a Stainless Steel tube factory to reduce production expenses.

Scrap Market Follows the Downward Trend
Stainless scrap prices also moved lower.

304 scrap fell 30-50 yuan/ton.

201 scrap dropped 20-50 yuan/ton.

Most merchants aimed to buy at lower prices. Transaction speed remained slow. The current price range for 201 new scrap is 4,500-4,550 yuan/ton.

Market Outlook for Tube Producers
The continued decline in nickel and finished steel prices provides cost relief. For a Stainless Steel tube company, this may improve profit margins on new orders. However, the weak demand requires careful inventory management. A strategic Stainless Steel tube factory can use this period to secure cheaper raw materials for future production.