Stainless Steel Market Transactions Lower-than-Expected, High-Grade NPI Under Pressure [NPI Daily Review]

November 21 - SMM reports that the average price of 8-12% high-grade NPI is 979.5 yuan/mtu (ex-factory, tax included), down 3 yuan/mtu from the previous working day.

Supply side, domestically, the fluctuating downward prices of high-grade NPI have led to shrinking profits for smelters, weakening their production drive. Additionally, the onset of the rainy season in the Philippines has made nickel ore extraction difficult, pushing up the prices of Philippine nickel ore. Consequently, domestic smelters may reduce production due to expanding losses. In Indonesia, new NPI smelter capacity is still ramping up, and some high-grade nickel matte production is being switched to high-grade NPI, so Indonesian production is expected to continue increasing.

Demand side, stainless steel is entering the year-end destocking cycle, with spot prices still fluctuating downward. Steel mills are extending their procurement cycles for high-grade NPI, and some already have long-term supply contracts, leading to weaker external purchase demand. Spot order prices in the market continue to decline, and high-grade NPI prices are expected to fluctuate downward in the short term.