NPI Prices still Vulnerable to Decline unless End Market Recover

Published: May 31, 2022 11:26

Source: SMM

Save

SHANGHAI, May 31 (SMM) - Recently, the price of NPI has entered a downward channel, and the price difference between NPI and pure nickel still maintained a high level.

SHANGHAI, May 31 (SMM) - Recently, the price of NPI has entered a downward channel, and the price difference between NPI and pure nickel still maintained a high level. The weak demand in stainless steel downstream markets and plentiful supply of NPI have caused the price of NPI to fall. For steel mills, the decline in NPI prices will make them more willing to purchase. However, as NPI price is in the downward channel, steel mills will prefer to purchase just in need rather than on a large scale. In addition,the profitability of steel mills also affect their willingness to purchase. At present, according to SMM survey, the full cost of non-integrated cold-rolling stainless steel plant is about 19,100 yuan/mt, and the prices of cold-rolled coil and hot-rolled coil are about 19,100-19,200 yuan/mt. The profit margin of stainless steel has not improved, keeping them cautious about purchasing. NPI prices will not stabilise until end markets recover. As the decline in NPI and ferrochrome prices has weakened cost support, stainless steel prices may remain weak, which in turn will continue to weigh on NPI prices.

Spot SMM

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

Apr 3, 2026 19:34

High-Grade NPI Smelters Face Profit Pressure Amid Flat Raw Material Prices and Limited Nickel Ore Decline

[SMM Nickel Flash News] Based on the cash cost of high-grade NPI calculated using nickel ore prices from 25 days earlier, profits at high-grade NPI smelters came under pressure during the week, with the sector as a whole remaining in a state of losses or marginal profitability. It is expected that next week, prices of auxiliary materials on the raw material side may remain flat, while the decline in nickel ore prices will likely be limited. High-grade NPI prices will still be under pressure amid back-and-forth negotiations between upstream and downstream, and smelter profits will be unlikely to see any significant improvement.

Apr 3, 2026 19:34

Apr 3, 2026 19:31

Refined Nickel Prices Decline, High-Grade NPI Discount Narrows; Downward Trend Expected to Continue

[SMM Nickel Flash] This week, the price center of refined nickel moved lower, while high-grade NPI prices remained stable. The average discount of high-grade NPI against refined nickel narrowed to 262.4 yuan/nickel unit. High-grade NPI prices were expected to remain under pressure next week, while refined nickel prices were expected to continue their downward trend. The average discount of high-grade NPI against refined nickel was expected to continue narrowing, and the driver for conversion of NPI to high-grade nickel matte weakened.

Apr 3, 2026 19:31

Apr 3, 2026 19:30

SMM Nickel Flash: High-Grade NPI Prices Drop, Market Enters Negotiation Phase

[SMM Nickel Flash] The average SMM price of 10-12% high-grade NPI fell WoW by 1 yuan/nickel unit to 1,082.5 yuan/nickel unit (ex-factory, tax included), while the average price of Indonesia's NPI FOB index fell WoW by $0.02/nickel unit to $136.58/nickel unit. The high-grade NPI market generally remained stable, and after the transaction center stabilized, the market entered a state of back-and-forth negotiations between upstream and downstream, with prices under pressure in the short term.

Apr 3, 2026 19:30