NPI Inventory Declines while Profits Recover Limitely amid Stable Ore Prices

Published: Mar 22, 2023 09:54

Source: SMM

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On March 21, the average price of SMM Ni 8-12% high-grade NPI was 1,200 yuan/mtu (ex-factory, tax included)

SHANGHAI, Mar 22 (SMM) - On March 21, the average price of SMM Ni 8-12% high-grade NPI was 1,200 yuan/mtu (ex-factory, tax included), flat from the previous trading day. Frequent news of production reduction and shutdown of stainless steel mills were bearish for NPI prices. The prices of finished products dropped following the raw material prices, limiting the stainless steel mills’ profit margins. Therefore, the mills were less willing to purchase raw materials at low prices. Due to the production cuts of domestic and Indonesia NPI plants, the overall NPI inventory declined. At the same time, ore prices stabilised after falling sharply, hence the profits recovered limitedly. As the market changed rapidly, NPI plants and some traders were cautious in delivery and intended to hold the prices firm. The short-term NPI prices will stay stable.

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