What Factors behind Price Recovery in High-grade NPI Market? SMM Reports

Published: Jul 3, 2017 11:09

Save

High-grade NPI price has been sluggish for nearly two months since mid May, 2017, trading below 800 yuan per mtu. The high-grade NPI market, however, staged significant comeback last week.

SHANGHAI, Jul. 3 (SMM) – High-grade NPI price has been sluggish for nearly two months since mid May, 2017, trading below 800 yuan per mtu. The high-grade NPI market, however, staged significant comeback last week after a slight rally two weeks ago.

It was reported that Tsingshan Steel raised the procurement price for high-grade NPI up to 840 yuan per mtu (price to factory, including tax), with purchasing volume around 2,000 tonnes. Taigang Stainless Steel also lifted the purchase base price for July’s high-grade NPI up to 790 yuan per mtu (price to factory, including tax, by cash), and the price would be raised further for large-volume suppliers.

China Nickel Ore Inventories Return to Growth, SMM Reports

What factors are behind the round of price gain in the high-grade NPI market? SMM attributes this to following factors.

First, Tsingshan Group has made preparation for production at its 1 million-tonne #300 stainless steel project in Morowali, Indonesia, so NPI supplies from Tsingshan Group’s Indonesian project are estimated to fall gradually. Meanwhile, Fujian Dingxin Industry, after keep silent for a long time, returned to the market for high-grade NPI purchases in mid-late June, with buying volumes at about 10,000 tonnes. With Tsingshan Group’s stainless steel project in Indonesia coming online and releasing capacity gradually, NPI shipments by Tsingshan Group from Indonesia to China will fall by about 50,000-60,000 tonnes or 6,000-7,000 tonnes (Ni content) per month.

Second, the run-up in stainless steel market, albeit declines last week, helped domestic stainless steel mills return to run in the black. Mills, which cut or suspended production, restarted operations, growing demand for raw materials.

Premiums of Imported Ferronickel for Q3 Terms Contracts Fall, SMM Reports

Third, inventories of raw materials at some mills are low, growing their eagerness to make purchases. Taigang Stainless Steel was heard to hold low inventories, and is expected to increase purchases in July.

Fourth, China’s output of medium and high-grade NPI is expected to increase in June, but to remain low. SMM predicts that the output will be approximately 23,000-24,000 tonnes in June, down by around 9 percent.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

npi price npi output china npi output nickel price

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

33 mins ago

[SMM Stainless Steel Flash] India's Leading Stainless Producer Announces Second Coil Price Hike in August

A leading Indian stainless steel producer raised domestic HR and CR coil prices effective August 14, its second revision in August. Increases by grade: 304 HR increases INR 1,000/t, 316L HR/CR increases INR 3,000/t, 200-series CR increases INR 1,000/t, and all HR grades in 1,301–1,500mm width increases INR 2,000/t. The hike was driven by persistently higher ferro molybdenum costs and volatile nickel prices amid ongoing uncertainty over Indonesia's revised RKAB mining quotas. India's domestic market remained firm with improving downstream demand, while subdued imports due to higher freight rates and geopolitical tensions reinforced buyers' reliance on domestic material. In China, weak futures sentiment weighed on spot prices, with RKAB uncertainty, hawkish Fed signals, and US-Iran tensions keeping sentiment bearish, though stable inventories and firm NPI costs provided a price floor, pointing to a weak-to-stable consolidation phase near term.

33 mins ago

39 mins ago

[SMM Stainless Steel Flash] Taiwan, China Initiates AD Investigation on Cold-Rolled Stainless Steel from Vietnam

Chinese Taiwan's Customs Administration under the Ministry of Finance has formally launched an anti-dumping investigation into certain cold-rolled flat-rolled stainless steel products imported from Vietnam, following a petition filed by Yusco and Tang Eng Iron Works. The investigative period covers July 1, 2025, to June 30, 2026. The Ministry of Economic Affairs will assess potential industrial damage within 40 days of receiving the notification, while the Ministry of Finance reviews dumping margins. Products under investigation are cold-rolled stainless steel flat products in coils or sheets with thickness of 0.05–6.10mm, nickel content of 5–20%, chromium content of 15–25%, manganese content up to 3%, and aluminum content up to 0.5%, excluding coated or plated products. Officials noted that surging import volumes priced below domestic production costs have caused severe market share losses and financial strain for local producers.

39 mins ago

48 mins ago

[SMM Nickel Morning Meeting Minutes] US July PPI Was Mild, the Most-Traded SHFE Nickel Contract Plunged Sharply in Early Trading

[8.17 Morning Meeting Minutes] The overall increase in the US Producer Price Index (PPI) in July remained mild, indicating a further easing of inflationary pressures, and expectations for a US Fed interest rate hike in September cooled further. The most-traded SHFE nickel 2609 contract plunged sharply in early trading, closing the morning session at 127,300 yuan/mt, down 1.12%. The Indonesia Nickel Miners Association (APNI) recommended keeping the 2026 nickel ore RKAB at 270 million wmt and additionally setting a 30 million wmt strategic buffer, bringing the potential total quota to 300 million wmt. With expectations for looser RKAB quotas, nickel prices are expected to remain in the doldrums in the short term, and the trading range for the most-traded SHFE nickel contract is 125,000-130,000 yuan/mt.

48 mins ago