On November 19, SMM 8-12% high-grade NPI average price is 988 yuan/mtu (ex-factory, tax included), down 6 yuan/mtu from the previous working day.
Supply side, domestically, high-grade NPI prices fluctuate downward, leading to reduced profits for smelters, weakening their production drive. Additionally, the onset of the rainy season in the Philippines makes nickel ore output difficult, pushing up Philippine nickel ore prices. Consequently, domestic smelters may reduce production due to expanded losses. In Indonesia, new NPI smelter capacity is still ramping up, and some high-grade nickel matte is being switched to high-grade NPI. Indonesian production is expected to continue increasing.
Demand side, stainless steel is entering the year-end destocking cycle, with spot prices still fluctuating downward. Steel mills extend their high-grade NPI procurement cycles, and some already have long-term supply agreements, resulting in weak external purchase demand. Spot order transaction prices continue to weaken, and high-grade NPI prices are expected to fluctuate downward in the short term.
