Profits of Steel Mills are Compressed and Steel Mills are Less Willing to Purchase

SHANGHAI, Dec 20 (SMM) - As of December 15, SMM Ni 8-12% high-grade NPI was 1,355 yuan/mtu (ex-factory, tax included), down 5 yuan/mt from the previous trading day. Today, due to the continuous decline in the futures prices of stainless steel, the NPI factories continued to make concessions. On the supply side, the overall inventory declined due to the large number of transactions in the early stage. At present, the production of NPI plants remained normal, hence the spot supply was sufficient. However, since most of the Indonesia NPI was traded in the form of long-term orders, the retail transactions were thin. On the demand side, due to the poor consumption of stainless steel, the futures prices fell by more than 1,500 yuan/mt, and steel mills held a bearish outlook. In addition, the price of ferrochrome remained high recently, hence the profits of steel mills were continuously compressed. As such, the steel mills were less willing to purchase. It is expected that the demand for NPI will be weak. NPI prices are expected to remain volatile in the short term.