Nickel Ore Prices Remained Rangebound with Some Downward Potential last Week

SHANGHAI, Sep 5 (SMM) - Ore prices fluctuated with occasional drops last week in the sluggish market. Last Friday, the SMM average price of Ni 1.5% ore stood at $67.5/wmt on a CIF basis, down $1/wmt from a week earlier. On the demand side, the NPI and stainless steel markets were slack. Indonesian NPI keeps flowing into the domestic market, which put huge pressure on the domestic NPI plants. Therefore, the NPI plants could only accept low-priced ores. On the supply side, the costs of nickel ore were still high. Ocean freight rebounded slightly due to the demand from nickel ore and coal markets, and the FOB prices offered by mines also rose. Meanwhile, upstream players held their prices firm as the restocking demand may improve due to the approaching rainy season. Last week, it was reported that the Philippines intended to raise the mining tax and the export tariff of ore, but it has not yet been decided. If it is implemented, the costs of nickel ore may rise further. Ni 1.5% ore prices are expected to move between $66-70/wmt in the short term.