SHANGHAI, May 3 (SMM) – NPI prices in China’s domestic market are expected to keep rising this week, Shanghai Metals Market foresees. 

“Robust demand and supply tightness will continue to push up China’s NPI prices,” SMM nickel analyst points out. 

Domestic stainless steel mills are active in buying NPI due to optimistic outlook for orders in May and June, and rising price of stainless steel also encourage their production enthusiasm, SMM survey finds. 

China Nickel Ore Inventories Keep Falling, SMM Reports

Moreover, supply in China’s NPI market is tight, and SMM expects domestic stainless steel to consume 32,500 tonnes of NPI (Ni content) in April, while domestic NPI output in Ni content is estimated around 30,800 tonnes, falling short of demand. 

“#300 stainless steel price, however, will be exposed to downward risks with large arrivals of stainless steel in mid or late May, and this will undermine NPI rising momentum,” SMM says. 

SMM expects high-grade NPI to see ceiling point in early or mid May, and price will likely fall after reaching 800-820 yuan per mtu (price to factory).   

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