The Market Adopted A Wait-and-See Stance Amid Weakening NPI Prices, Demand May Decline Due to Maintenance at Steel Mills [NPI Daily Review]

On September 11, SMM 8-12% high-grade NPI prices averaged 985.5 yuan/mtu (ex-factory, tax included), down 4.5 yuan/mtu from the previous working day. Supply side, in the domestic market, nickel ore prices have not significantly declined. Under high costs for smelters, September production is expected to remain stable. In Indonesia, new capacities are gradually commissioned, but high-grade nickel ore resources are still tight. Most smelters still face raw material shortages. After shifting from high-grade nickel matte production to NPI, Indonesian production slowly climbs. Demand side, a major stainless steel mill in South China announced a maintenance plan. With deeper declines and expanded losses in stainless steel, the production willingness of steel mills has weakened, adversely affecting raw material demand. In the short term, NPI prices are expected to fluctuate downward.