High-Grade NPI Upstream and Downstream Still in Stalemate, Market Prices to Operate Stable with a Weak Trend in the Short Term [NPI Daily Review]

SMM reported on December 31,

      On December 31, the SMM 8-12% high-grade NPI average price was 937 yuan/mtu (ex-factory, tax included), down by 0.5 yuan/mtu compared to the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward. With traditional smelters facing expanded losses, weakened production momentum, and environmental protection inspections, production is expected to decline slightly. In Indonesia, NPI smelters currently have relatively sufficient raw material inventories. Coupled with some smelters maintaining partial profits and weak demand for high-grade nickel matte, the phenomenon of converting high-grade nickel matte to high-grade NPI persists, and Indonesian production is expected to maintain growth. Demand side, the stainless steel market has seen improved spot consumption, and social inventory has started destocking. However, as January approaches, the market sales cycle is shortening, leading to weaker raw material procurement demand from steel mills. Intentional prices remain on a downward trend, but supported by costs, high-grade NPI prices are expected to remain stable with a weak trend in the short term.