NPI prices fell amid muted trades in spot market

As of last Thursday, the average price of 8-12% high-grade NPI was 11,425 yuan/mtu (ex-factory, including tax), down 22 yuan/mtu from October 13. NPI prices fell last week. From a fundamental perspective, the supply side is currently in a relaxed state. The high-grade nickel matte project in Indonesia still has the potential to convert into NPI, and it is expected that NPI production in Indonesia will increase in October. Additionally, due to the reluctance of traders to sell in the earlier period, the NPI inventory held by traders is showing an upward trend. Looking at demand, the traditional "Golden September, Silver October" season has not materialized, and stainless steel prices continue to decline. Some steel mills are operating at a loss in the backdrop of high raw material prices, leading to a reduction in production of 300-series stainless steel in September and October. In summary, the NPI demand and supply are weak, and it is expected that NPI prices will mainly move between 1,105-1,125 yuan/mtu (ex-factory, including tax).