SHANGHAI, Apr 6 (SMM) – The average price of SMM 8-12% high-grade NPI was 1,095 yuan/mtu (ex-factory including tax) on April 2, and the average price of Indonesian NPI was 1,075 yuan/mtu (including tax, arriving at ports).
After the concentrated transactions in the previous week, the market quietened last week. The steel mills just finished restocking, and NPI prices will remain high in short term. Downstream purchases are less active, and the market is likely to maintain the wait-and-see sentiment.
The prices of NPI is expected to move between 1,075-1,115 yuan/mtu (ex-factory, including tax).
Weekly average discount of high-grade NPI stood at 125.9 yuan/mtu against pure nickel, slightly expanded by 18.2 yuan/mtu on the week.
Nickel prices fluctuated upward last week, and is likely to extend the trend this week. The discount of NPI is expected to remain at the current level. The value of pig iron given to the buyer by the high-grade NPI supplier was 264 yuan/mtu.
Calculation method: ((common carbon and steel scrap price including tax * pig iron content 82%)/10). The calculated pig iron value is 221 yuan/mtu. ((2699 yuan/mt * 82%)/10=221).
The profit of nickel ore inventory purchased 25 days ago declined significantly due to the sharp increase in the inventory price, but the transaction volume of high-priced ore was small, and most plants did not keep stocks when the prices were high.
The trend of firm prices is likely to last for a short time as the NPI plants could not afford the cost. The graph only reflects the profit based on the current ore price and NPI price, which does not represent the true cost of the plants.
As NPI prices will remain stable this week, the nickel ore inventory cost will remain high, and the profit will continue to trend downward.
![[SMM Analysis] Inventory Accumulation and Weak Demand Push High-Grade NPI Lower in Search of a Bottom](https://imgqn.smm.cn/usercenter/LNpBh20251217171732.jpeg)