NPI Prices Climb Slightly amid High Costs of NPI Plants and Tight Spot Supply in the Market

SHANGHAI, Feb 6 (SMM) - Last Friday, the SMM average price of 8-12% high-grade NPI stood at 1,370 yuan/mtu (ex-factory, including tax), up 7.5 yuan/mtu from the previous session and flat from the previous trading day. Spots were sold intensively last week, and stainless steel mills offered higher purchase prices. On the demand side, downstream demand remained weak yet due to the consumption cycle, thus the NPI plants held the prices firm. The market supply was not tight. Spot NPI in the Chinese market was mostly in the hands of traders, and the production reduction of NPI plants was limited during the CNY holiday. However, there were few sources of Indonesian NPI, and the goods were mainly sold under long-term orders in advance. In the first half of last week, bullish sellers held their prices firm, but in the second half of the week, the sellers reduced their quotes since the SS contract prices crashed. Profits of NPI plants were thin amid resilient nickel ore prices in the rainy season. The profit margins of various sectors across the stainless steel industry chain dropped because of the lower-than-expected consumption post CNY holiday. And the game among different sectors was vehement. NPI prices are expected to move rangebound between 1,360-1,380 yuan/mtu (ex-factory, including tax) this week.