[Ni] NPI Prices Stabilizes, Warmer Market Still Need to Wait For

SHANGHAI, Nov. 20 (CBI China) -- According to the latest news, traded prices (including tax) for NPI (1.6-1.7%) in Linyi city, Shandong province are RMB 2,850-2,900/mt this week, unchanged from last week’s level. Two local NPI producers that resumed production said since downstream purchase is not recovered obviously in recent time, they are still controlling output as "output based on sales", maintaining daily output at 200-300 mt.

    A number of positive changes have taken place in current market, and market sentiment and confidence is gradually cumulating: government introduced policies to stimulate domestic steel market; it is heard some steel mills resumed production in early November, and so on.  But market players said we still need to wait for the positive effect of favorable policies; steel mills have also expressed to produce based on orders and will not rule out the possibility of stopping production again. All these factors add a lot of uncertainties to future trend of market.

    Although NPI supply is limited in the market at present, demand is also weak, thus market players said NPI prices will unlikely decline in near future.

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