During the week, the SMM 8-12% high-grade NPI weekly average price was 1,011.8 yuan/mtu (ex-factory, tax included), down 0.3 yuan/mtu WoW. The Indonesian NPI FOB index rose 0.1 USD/mtu WoW. NPI prices started to fall back this week. Supply side, domestically, due to the previous fluctuations in NPI prices, domestic smelters' profits recovered, and production slightly increased. In Indonesia, a new production line in the IWIP park was put into operation during the week, but it is still in the ramp-up stage in the short term. Additionally, with tight Indonesian nickel ore supply, the increase in production is expected to be limited. Demand side, in August, stainless steel is approaching the downstream rigid demand replenishment cycle, and production slightly recovered. However, due to the current low-level fluctuations in stainless steel spot prices, the marginal profit of stainless steel plants was damaged, and the procurement price of a stainless steel plant in South China fell compared to the previous period. In summary, the current supply and demand of NPI are both strengthening, but the willingness to accept prices in the stainless steel market is poor. This negative feedback to raw material prices led to a decline. However, given the tight supply of Indonesian nickel ore, the price decline is expected to be limited in the short term.
