Stainless Steel Prices Fell Significantly and the NPI Market was Subdued

SHNAGHAI, Dec 26 (SMM) - The average price of SMM 8-12% high-grade NPI was 1,355 yuan/mtu (ex-factory, including tax) last Friday, flat from the previous trading day and down 7.5 yuan/mtu from a week ago. The transactions of NPI were extremely thin last week. On the demand side, due to the significant decline in the futures prices of stainless steel, the consumption obviously weakened. In addition, the steel mills held a bearish outlook towards the future consumption near the Chinese New Year. A large-sized steel mill continued to reduce the production. As such, NPI prices were under great pressure. On the supply side, due to the weak demand in the early stage, the inventory of some domestic NPI plants increased. Although the transactions increased intensively and the inventory declined in the first half of the month, the domestic supply was sufficient as the output of NPI plants was normal. On the cost side, nickel ore prices remained firm last week, which provided some support for NPI prices. At present, the prices declined and the offers of the sellers also declined. However, some steel mills still have procurement demand in January and SMM will continue to pay attention to the market procurement. It is expected that the NPI prices will remain at 1,340-1,360 yuan/mtu (ex-factory, including tax).