Chinese stainless melt production has accelerated in 2016. This is due to the ramp up of 6Mt/a of new melt shop capacity as well as a stimulus driven improvement in demand. As a result world nickel demand will increase by around 9% this year to 2Mt. As the Chinese ramp up will continue in 2017 we anticipate similar growth in world nickel demand next year. But we are not so certain that the Chinese market can absorb all the new stainless steel. So in this insight we examine some of the risks that could have a moderating short to medium term influence.