SMM, October 19:
On October 19, the SMM high-grade NPI market sentiment factor stood at 1.76, up 0.01 MoM. The upstream sentiment factor for high-grade NPI was 1.80, flat MoM, while the downstream sentiment factor was 1.72, up 0.01 MoM. Overall sentiment in the nickel-iron market remains weak, with notable price divergence between upstream and downstream. Downstream steel mills are actively probing lower prices, with low-price purchasing intentions continuing to decline; some mills have already shown psychological price levels below 1,000 yuan. However, upstream suppliers are still quoting relatively high prices, leaving a wide gap between buyers' and sellers' expectations. Substantive transactions remain difficult, with most activity stuck in bargaining. On the raw material side, weakening nickel ore prices are driving down nickel-iron production costs, further lowering market price support. In terms of price ratios, the SHFE/LME price ratio for nickel-iron versus steel scrap is exerting strong pressure, while sluggish consumption of stainless steel products is dragging down demand for high-grade NPI. Bearish sentiment is pervasive across the market, and prices are expected to face further downside.
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