SHANGHAI, Feb 2 (SMM)—The average price of high-grade NPI was 1,120 yuan/mtu (ex-factory, including tax) on January 29, up 10 yuan/mtu from the previous week. The ferronickel market was quiet last week, with only TISCO’s raw material purchase for post- CNY production. Steel mills have extended the stocking period considering the impeded logistics and short supply from NPI plants due to COVID-19, but restocking has come to an end, and transportation has gradually stopped in late January. Prices of high-grade NPI are expected to remain flat this week.

The prices of NPI raw and auxiliary materials have risen significantly last week. The transaction price of nickel ore reached $70/wmt as the mines in the Philippines held prices high and some smelters compromised under rigid demand. Prices of thermal coal and coke have also risen sharply, driving the cost of ferronickel up about 50 yuan/mtu. Ferronickel plants in most regions are suffering from losses. Some small-sized plants are considering to halt production amid low nickel ore inventory.