SHANGHAI, Mar. 13 (SMM) – After the Chinese New Year holiday, NPI prices fell steadily, fueling pessimistic sentiment in the market. It was reported that stainless steel mills’ willingness to beat down prices was strong since inventories of NPI were high.
Before the Chinese New Year holiday, NPI producers were reluctant to move goods due to bullish expectation when LME nickel prices rose and price spread between NPI and nickel was expanding.
After the Chinese New Year holiday, nickel prices fell and price spread between nickel and NPI was narrowing. Therefore, pessimistic sentiment grew.
From March 8th, LME nickel prices moved higher, expanding price spread between nickel and NPI. Although bid prices from stainless steel mills did not rose, inquiries for NPI became brisk, which allows NPI entered in to price negotiation stage.