Price spread between high-grade NPI, refined nickel returns to discounts last week

Published: Feb 25, 2019 11:23

Save

Late resumption across downstream stainless steel plants dragged the upward momentum in NPI prices

SHANGHAI, Feb 25 (SMM) – Greater growth rates pulled prices of refined nickel above that of high-grade nickel pig iron (NPI) last week, after spot prices of high-grade NPI stood at premiums over refined nickel two weeks earlier, showed SMM data.

Last week, late resumption across downstream stainless steel plants dragged the upward momentum in NPI prices, even though its supply remained tight in the market. SMM learned that cold-rolled stainless steel producers have yet to fully recover though producers of hot-rolled stainless steel mostly resumed as of Friday February 22.

Prices of the most-active SHFE nickel contract and spot nickel materials increased for five consecutive trading days in the week to February 22. On Wednesday February 20, prices of high-grade NPI started to fell blow prices of Norilsk nickel, standing at a discount of 11.25 yuan/mtu over Norilsk nickel.

SMM believes that higher costs of raw materials will continue to weigh on purchases at stainless steel plants in the weeks ahead.

Market commentary Nickel pig iron NPI

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 to learn 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

14 hours ago

High-Grade NPI Smelter Profits Squeezed as Ore Prices Rise and Sales Prices Dip

[SMM Nickel Flash] Based on nickel ore prices from 25 days ago, smelter profits for high-grade NPI remained high this week. However, from the current raw material side, ore prices from both the Philippines and Indonesia increased, while auxiliary material prices saw a slight pullback, leading to an increase in the cash cost of producing high-grade NPI from spot ore. At the same time, high-grade NPI prices experienced some pullback, making it difficult for smelter profits to see sustained improvement.

14 hours ago

High-Grade NPI Prices Fall, Expected to Stabilize as Chinese New Year Approaches

[SMM Nickel Flash] This week, due to a sharp decline in futures triggering arbitrage selling, high-grade NPI prices fell significantly. However, after the selling activity subsided, upstream quotations and the market center gradually returned to normal levels, supported by cost factors. Looking ahead, as the Chinese New Year holiday approaches, market activity is expected to remain subdued, and high-grade NPI prices are projected to hover at highs with limited fluctuations.

14 hours ago

Nickel Prices Drop: SMM 10-12% High-Grade NPI Down 17.2 Yuan, Indonesia NPI FOB Index Falls 2.06 $/mtu

[SMM Nickel Flash] The SMM average price of 10-12% high-grade NPI fell 17.2 yuan/mtu WoW to 1,035.8 yuan/mtu (ex-factory, tax included), while the Indonesia NPI FOB index average price dropped 2.06 $/mtu WoW to 131.2 $/mtu. At the beginning of the week, futures hit limit-down, and nickel prices fell sharply WoW, driving the emergence of arbitrage supplies sold at low prices, leading to a significant decline in high-grade NPI prices.

14 hours ago