China NPI output fell 7.46% in February on coronavirus impact 

SHANGHAI, Mar 6 (SMM) – Output of NPI in China slipped a significant 7.46% month on month but climbed 3.97% year on year to 42,100 mt in Ni content in February, according to SMM data. 

High-grade NPI accounted for 35,800 mt in Ni content, down 6.89% from January, as the COVID-19 outbreak deterred shipments of adjuvant to high-grade NPI plants. Substantial production cut at stainless steel mills in February depressed prices of high-grade NPI, which added to cost pressure at NPI producers and promoted them to reduce output. 

Meanwhile, production of low-grade NPI fell 10.56% on the month to 6,300 mt in Ni content, as some #200-series stainless steel integrated plants cut production in the face of elevated inventories and subdued downstream demand. 

NPI production in China is expected to recover in March on the easing impact of coronavirus on manpower, logistics and adjuvant materials supply. Domestic NPI output is estimated to rise 2.36% from February to 43,100 mt in Ni content in March, with production of high-grade materials increasing 1.73% to 36,400 mt in Ni content, while that of low-grade materials expanding 6.02% to 6,700 mt in Ni content. 

NPI producers resume operations in an orderly way and some mills under maintenance will also restart production in March. The return of some #200-series stainless steel integrated plants will lift production of low-grade NPI.