SHANGHAI, Jun 16 (SMM) – The SMM average price of 8-12% high-grade NPI stood at 1,160 yuan/mtu (ex-works, including tax) on June 11, and the average price of Indonesian NPI stood at 1,160 yuan/mtu (including tax, delivery to ports).
Trades were quiet last week, but quotations by sellers continued to increase. High production of the 300 series stainless steel ensured strong demand. Meanwhile, high-grade NPI plants cut output before May due to nickel ore shortages, tightening NPI supply.
High production schedule of stainless steel triggered concerns over stock accumulation in July and August. In this scenario, steel mills refused to accept sharp gains in raw material prices, preventing NPI prices from rising significantly.
With the start of a new round of stockpiling by steel mills, the NPI market will improve. Imports of ferronickel remained low, while supply of stainless steel scrap barely increased. Utilisation of high-grade NPI should rise in #300 stainless steel production in June and July.
Prices of high-grade NPI should rise further but price gains will be slow. Prices of high-grade NPI are expected to move between 1,140-1,200 yuan/mtu (ex-factory, including tax) in June.
