Nickel price plunge hits global stainless steel industry chain

The inventory impairment pressure of self-tapping screw manufacturers has intensified, and small and medium-sized enterprises may face a reshuffle

In the third quarter of 2023, the nickel price of the London Metal Exchange (LME) fell by 35% year-on-year, causing the cost of 304 stainless steel raw materials to fluctuate beyond expectations. Industry analysis pointed out that the capital chain of small and medium-sized fastener companies that rely on low-price competition is under pressure, and leading companies may take the opportunity to integrate upstream resources.

In-depth analysis: The plunge in nickel prices has had a huge impact on the stainless steel industry chain. Small and medium-sized enterprises face greater operating pressure due to inventory backlogs and tight capital chains. Large enterprises can further consolidate their market position by integrating upstream resources and reducing raw material costs.

Future Outlook: It is expected that the stainless steel industry chain will undergo a round of reshuffle in the next few years. Small and medium-sized enterprises may face the risk of being eliminated, while large enterprises with financial and technological advantages will occupy a larger market share.