Tight supplies boost purchasing price of high-grade NPI

Shanghai base metals were mostly lower on Tuesday morning as investors awaited the release of China's trade data for June. Meanwhile, their counterparts on the LME also fell for the most part.

China’s NPI output rose 3.27% from December to 38,600 mt Ni in January. This included 31,600 mt Ni of high-grade NPI, up 5.74% on the month, and 7,000 mt Ni of low-grade NPI, down 6.58% month on month.

SMM high-grade NPI average price on December 4 was 1,030 yuan/mtu (ex-factory, tax included), down 10 yuan/mtu on the week. The purchase prices of high-grade NPI moved between 1,020-1,045 yuan/mtu (delivered to factory, tax included).  The willingness of restocking across steel plants have weakened along with the low stainless steel prices, which had dropped below the costs in all domestic ferronickel plants. This has led to lower transactions amid the ferronickel plants’ low intention of delivery.

China’s NPI output shrank 2.2% from October to 42,700 mt Ni in November.

A stainless steel plant in east China raised its purchasing price of high-grade nickel pig iron this week by 10 yuan/mtu

Trades thinned on Wednesday Aug 22 as demand weakened after transactions from most long-term contracts ended

Purchasing price for its Sept tender settled at $2,509/mt cfr over the weekend, down some 11% from Aug

Aluminium fluoride prices in the Chinese market have been holding steady since the beginning of this month

Discounts of high-grade NPI to refined nickel prices are expected to widen this month due to an increasing supply of the former

A high-grade NPI plant in north China suspended its production last week on environmental concerns