Consulting Letter on the Addition and Discontinuation of SMM High-Grade NPI Price

Published: Dec 10, 2024 17:30

Source: SMM

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As is well known, market participants interested in the nickel and stainless steel markets—including producers, downstream producers, dealers, traders, and other private and public organizations—need to reference and rely on price assessment reports featuring integrity and independence published by SMM (SMM Information & Technology Co., Ltd., hereinafter referred to as "we"). Therefore, it is extremely important for SMM to accurately reflect the true market prices. To solicit genuine suggestions and feedback on the high-grade NPI market prices, please write your response and preferably send it via email to the following address: jinmenghua@smm.cn and indicate whether your response can be made public. Comments requiring confidentiality may be used as references but will not be attributed. This consultation project starts on December 10, 2024, and will end on December 13, 2024. SMM will publish all responses, except those requiring confidentiality, by December 13, along with a summary of the survey results and related decisions. If these decisions result in substantial changes to the existing methodology, SMM may also issue subsequent announcements. According to the discussion at the closed-door price seminar of the APAC (9th) Stainless Steel Industry Conference 2024 and subsequent SMM survey results, we have made the following decisions regarding SMM high-grade NPI prices:

Consulting Letter on the Addition and Discontinuation of SMM High-Grade NPI Price

Survey Period for Price Assessment Methodology: December 10, 2024 – December 13, 2024

Report Leaders: Cong Wang, Menghua Jin

Consultation Feedback E-mail: wangcong@smm.cn; jinmenghua@smm.cn

Background Overview

To solicit genuine suggestions and feedback on the high-grade NPI market prices, please write your response and preferably send it via email to the following address: jinmenghua@smm.cn and indicate whether your response can be made public. Comments requiring confidentiality may be used as references but will not be attributed.

This consultation project starts on December 10, 2024, and will end on December 13, 2024. SMM will publish all responses, except those requiring confidentiality, by December 13, along with a summary of the survey results and related decisions. If these decisions result in substantial changes to the existing methodology, SMM may also issue subsequent announcements.

According to the discussion at the closed-door price seminar of the APAC (9th) Stainless Steel Industry Conference 2024 and subsequent SMM survey results, we have made the following decisions regarding SMM high-grade NPI prices:

Decision 1: Add 8-10% high-grade NPI (ex-factory price) and 10-12% high-grade NPI (ex-factory price).

SMM plans to discontinue the update of 8-12% high-grade NPI (ex-factory price) no later than December 31, 2025. Since this price is widely used for long-term contract settlements and spot order transactions, we solemnly seek your opinion on the retention period, such as one month, one quarter, or one year? SMM will discontinue it based on the consultation results.

Additionally, SMM seeks feedback on whether to retain the 8-12% high-grade NPI (ex-factory price - Inner Mongolia), 8-12% high-grade NPI (ex-factory price - Jiangsu), 8-12% high-grade NPI (ex-factory price - Shandong), and 8-12% high-grade NPI (ex-factory price - Liaoning) price points. If not, please suggest the discontinuation time.

Decision 2: Add 10-12% Indonesian high-grade NPI (CIF, tax included) and 12-14% Indonesian high-grade NPI (CIF, tax included).

SMM plans to discontinue the update of 10-14% Indonesian high-grade NPI (CIF, tax included) no later than December 31, 2025. Since this price is widely used for long-term contract settlements and spot order transactions, we solemnly seek your opinion on the retention period, such as one month, one quarter, or one year? SMM will discontinue it based on the consultation results.

Decision 3: Other suggestions.

Note: The Indonesian NPI FOB Index, high-grade NPI Index, low-carbon high-grade NPI Index, 1.5-1.7% NPI (ex-factory price), and Ni≥14% Indonesian high-grade NPI (CIF, tax included) price remain unchanged.

SMM Nickel Research Team

December 10, 2024

NPI

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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