European stainless steel mills are decreasing their purchase on nickel for the second quarter while three-month nickel price on the LME soared to US$47,150, market sources said.

Stainless steel makers in Europe are suffered from the sky high cost of nickel recently; they are struggling to maintain a low level purchases on nickel, some of them have been canceling nickel orders.

People are really chapfallen at this moment and take a high risk to purchase this raw material, thus they only buy what they absolutely require and place orders at last minute, sources added.