SHANGHAI, Dec 8 (SMM)—SMM high-grade NPI average price on December 4 was 1,030 yuan/mtu (ex-factory, tax included), down 10 yuan/mtu on the week. The purchase prices of high-grade NPI moved between 1,020-1,045 yuan/mtu (delivered to factory, tax included). The willingness of restocking across steel plants have weakened along with the low stainless steel prices, which had dropped below the costs in all domestic ferronickel plants. This has led to lower transactions amid the ferronickel plants’ low intention of delivery.
NPI prices remained high due to high costs and weak cost efficiency of alternative raw materials. Purchased prices of #300 stainless steel rose to 9,100 yuan/mt. But trades were still low. High-grade NPI was more cost effective than scrap materials, which encouraged producers to hold prices firmly. Imported NPI showed weaker cost efficiency due to higher nickel prices and small orders of ferronickel decreased.
The cost efficiency of alternative raw materials weakened and stainless steel prices remained stable as stocks at steel mills consumed. This is likely to boost NPI prices slightly. High-grade NPI prices are likely to trade between 1,030-1,050 yuan/mtu (ex-factory, tax included).
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