SMM China July NPI Production and August Forecast

Published: Aug 9, 2024 14:11

Source: SMM

Save

In July 2024, China's NPI production was 29,900 mt in nickel content (+6.43% MoM) and 737,000 mt in physical content (+10.69% MoM).

In July 2024, China's NPI production was 29,900 mt in nickel content (+6.43% MoM) and 737,000 mt in physical content (+10.69% MoM). Among these, high-grade NPI production was approximately 219,000 mt in physical content and 22,200 mt in metal content (+8,400 mt in metal content); low-grade NPI production was approximately 518,000 mt in physical content and 7,700 mt in metal content (+9,700 mt in metal content). Despite Indonesian RKAB new approval quotas in July, the mining volume was limited by funding and rainfall, leading to a continued rise in the import of Philippine nickel ore, which in turn raised the price of Philippine nickel ore and increased the costs for domestic smelters. Additionally, the tight supply of Indonesian NPI resources pushed the strong performance of NPI in July, with prices fluctuating upwards, leading to the profit recovery of some smelters and enhanced production drive. From the perspective of integrated stainless steel mills, since purchasing high-grade NPI externally was more cost-effective for 300-series stainless steel mills, their high-grade NPI production slightly decreased in July. With 300-series stainless steel prices fluctuating downwards and raw material prices running strong, some stainless steel mills suffered losses and adjusted their output structure to increase 200-series stainless steel production. Consequently, the total low-grade NPI output of 200-series stainless steel production lines increased in July.

In August 2024, China's NPI production is expected to reach around 30,400 mt in metal content, up 1.58% MoM. According to an SMM survey, a smelter in East China will continue to ramp up production in August, while a smelter in North China will undergo partial line maintenance, with limited impact on production. Additionally, the increase in NPI production from integrated stainless steel mills in August is still expected to be concentrated in the 200-series stainless steel production lines. In summary, China's NPI production in August is expected to maintain a growth trend, but the growth rate will slow down.

Market forecast Market review

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

[SMM Cobalt Market Flash] SMM VP Shirley: Indonesia MHP Cobalt to Rise as Global Supply Shifts to Dual-Centre Model

At the 2026 SMM Indonesia Mining & Critical Metals Conference, SMM VP Shirley Wang said the DRC has historically been the dominant centre of global cobalt supply, but Indonesia's share has risen notably following policy shifts last year. Over the next decade, cobalt contained in Indonesian MHP is expected to account for a growing proportion of global supply, with the market transitioning from a DRC-centric structure to a dual-centre model anchored by both the DRC and Indonesia.

1 hour ago

[SMM Stainless Steel Flash] Global Stainless Steel Output Up 2.5% YoY in Q1 2026

The World Stainless Association announced that, global stainless steel production rose 2.5% YoY to 15.8 million tons in Q1 2026. Asia produced 13.4 million tons from January to April, up 3.3% YoY, with China contributing 9.84 million tons (+4.3% YoY). The EU saw output decline 4.6% YoY to 1.5 million tons, while the US produced 600,000 tons (+2.3% YoY).

1 hour ago

[SMM Stainless Steel Flash] Supply Worries Drive LME Nickel Prices to One-Month High

LME nickel futures rebounded above US$19,200/ton on une 1, closing at US$19,251/to, a one-month high, on the back of consecutive weekly gains. The rally was driven by declining pure nickel inventories and fresh mining disruptions, including Zimbabwe's restriction on nickel exports, offsetting a stronger US dollar amid rising Middle East tensions. Spot prices rose US$172 to US$19,039/ton, Nickel increase US$2,605 or 15.6% year-to-date.

1 hour ago