SHANGHAI, Aug 9 (SMM) - China produced 31,100 mt in Ni content of NPI in July, down 8.82% MoM and 25.75% YoY. As the stainless steel market was weak amid the off-season, the demand for NPI declined. In addition, due to the inflow of Indonesia NPI, the market supply was in huge surplus. The output of high-grade NPI stood at 25,000 mt (Ni content), down 7.15% MoM in July. And the output of low-grade NPI was 6,100 mt (Ni content), down 15.11% on the month. Due to the overall supply surplus of NPI, the NPI prices fell sharply in July, hence domestic NPI plants chose to suspend and reduce the production ro reduce the risks amid the high cost pressure. In addition, the output of 200 series stainless steel in the integrated steel mills decreased. Therefore, the operating rates and output of low-grade NPI declined.
It is estimated that the NPI output in August will stand at around 30,500 mt in Ni content, and the market holds a cautious attitude towards the follow-up stainless steel market. In addition, with the increase in the Indonesia NPI output, the supply surplus may be more severe. In this scenario, the domestic NPI plants lower the operating rates to slow down the increase in output. In the future, the market should pay attention to the recovery of terminal demand for stainless steel, which may slow down the decline of NPI prices. However, the increase in Indonesia NPI will still put greater pressure to the domestic market in the long term.
