U.S. nickel premiums have remained relatively steady in recent weeks despite a continued lack of demand from stainless steel producers and rising stocks in London Metal Exchange warehouses, market watchers said.

Activity on the market has remained quiet, with one trader saying he hasn't sold any nickel for at least three weeks, and only a small amount at that.

"It was already slow before the financial crisis but now everyone is hunkered down," the trader said. "I think it will be a while, well into the first quarter, before we see a turnaround."

Traders quoted nickel premiums of 40 to 45 cents a pound for melting-grade nickel, up from a range of 38 to 43 cents a pound previously,...