High-grade NPI price inches up on tight supply

The nickel market has been volatile recently, followed by the NPI market. With upstream and downstream hard to agree on prices, the transactions were light.

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.

Tianrun Special Alloy, a high-grade nickel pig iron (NPI) producer in north China’s Inner Mongolia will suspend production at the end of June, when its existing nickel ore stocks are expected to be depleted, SMM learned.

Demand for lithium iron phosphate (LFP) batteries in the new energy vehicle market, which enjoy more cost advantage as compared to high-nickel ternary batteries, will likely increase with support from the latest 2020 NEV subsidy policy, under which only passenger cars costing less than 300,000 yuan/unit will receive subsidies. 

Premiums of spot copper cathode in Shanghai edged lower on the morning of April 27 as sellers showed more cash-in inclination after the delivery for long-term contracts and a rally in copper futures kept buyers hesitated on the backdrop of ample spot supplies. 

Transactions of spot copper were active in Shanghai on the morning of Friday March 27 as traders stepped up purchases on reduced futures prices. This prompted spot cargo holders to lift premiums.

NPI production from Ulanqab accounted for 7.9% of the nation’s total in Jun

This is likely to keep nickel prices robust, rangebound in short term

The adjustment lowered the listed price of praseodymium-neodymium oxide to 293,700 yuan/mt, down 7.2%

The production line has an annualised capacity of 1,000 hydrogen fuel cell engines