SHANGHAI, Apr 29 (SMM) – The steady release of newly-commissioned capacity and relatively tepid downstream demand continued to drag on prices of high-grade nickel pig iron (NPI) and expanded its discounts against refined nickel for the week ended Friday April 26.
A declining nickel market also weighed purchasing prices of high-grade NPI by a stainless steel plant in the north, to 965 yuan/mtu, with transportation fees and taxes included, as of Friday April 26. This compared with traded prices of 980 yuan/mtu at the start of last week.
While some major steelmakers in the north and south continued to suspend the procurement of raw materials, enquiries improved as some steel mills restarted purchases last week.
As of Friday, discounts of high-grade NPI expanded by some 7.7 yuan/mtu on the week, to 13.5 yuan/mtu against refined nickel.
SMM expects lower prices of NPI to recover profits at stainless steel plants. This, coupled with relatively high demand from #300 series, will prevent discounts of high-grade NPI from falling further this week.