High-Grade NPI Fundamentals Remain Under Pressure, Prices to Stay Stable with a Weak Trend in the Short Term [NPI Daily Review]

SMM reported on January 2,

      On January 2, the SMM 8-12% high-grade NPI average price was 936 yuan/mtu (ex-factory, tax included), down 1 yuan/mtu from 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 profitability 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 the January market sales cycle shortens, steel mills' demand for raw material procurement remains weak, with intended prices maintaining a downward trend. Supported by costs, high-grade NPI prices are expected to remain stable with a weak trend in the short term.