Downstream Stocking Willingness Falls Short of Expectations; NPI Market Transactions Remain Sluggish [NPI Daily Review]

SMM, January 7 -

      On January 7, the SMM 8-12% high-grade NPI average price stood at 935 yuan/mtu (ex-factory, tax included), unchanged from the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward, and with the widening losses of traditional smelters, production is expected to weaken. In Indonesia, NPI smelters currently have relatively sufficient raw material inventories. Coupled with some smelters maintaining partial profitability, the current demand for high-grade nickel matte remains weak, and the phenomenon of converting high-grade nickel matte to high-grade NPI persists. Indonesian production is expected to maintain growth. Demand side, stainless steel mills have entered the seasonal maintenance period, leading to a decline in production. Steel mills' demand for NPI has decreased MoM, and top-tier enterprises have already signed a large number of long-term contracts for raw materials, resulting in weaker spot order demand in the market. However, the cost support for NPI remains relatively firm, and high-grade NPI prices are expected to operate stably with a weak trend.