SHANGHAI, Oct 18 (SMM) - In September, NPI prices soared on vigorous market transactions. As of September 30, the average price of SMM 8-12% high-grade NPI stood at 1,327.5 yuan/mtu, up 72.5 yuan/mtu from the beginning of the month. On the demand side, the stainless steel market gradually picked up in September. The spot prices of stainless steel rose gradually with the growing orders received by steel mills, and the mills’ losses narrowed. Therefore, many mills resumed their production in September, hence the output of 300 series stainless steel stood at about 1.52 million mt, up 23.84% MoM. Meanwhile, stainless steel scrap prices grew amid the falling supply caused by the production reduction of steel mills in July and August. The cost efficiency of NPI was higher than that of scrap, so the mills increased their purchasing volume of NPI. On the supply side, profits of the domestic NPI plants increased as their costs fell with the depletion of the previously stored high-priced ores, and the plants became more willing to ship. NPI inventories were on a downward trend amid the growing demand, easing the NPI plants’ pressure, and the supply of Indonesia NPI available in the market was limited, so the oversupply was gradually alleviated.
In October, steel mills are active in restocking as they mainly consume the in-plant inventory of raw materials during the National Day holiday. In addition, the new production lines are gradually put into operation, thus the overall market demand has increased. On the supply side, the output of Indonesia NPI is lower than expected, which tightens the supply in the market, so NPI prices may grow further. NPI prices are expected to move between 1,320-1,370 yuan/mtu (ex-factory, tax included) in October.
