High-Grade NPI Fundamentals Under Pressure, Short-Term Prices Remain Weak [NPI Daily Review]

SMM, January 8 –

      On January 8, the SMM 8-12% high-grade NPI average price was 934.5 yuan/mtu (ex-factory, tax included), down by 0.5 yuan/mtu from the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward. With traditional smelters facing expanded losses, production is expected to weaken. In Indonesia, NPI smelters currently have relatively sufficient raw material inventories. Coupled with some smelters maintaining partial profitability, 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 a seasonal maintenance period, leading to a decline in production. Steel mills' demand for NPI decreased MoM, and top-tier enterprises have already signed a large number of long-term contracts for raw materials, weakening spot order demand in the market. However, NPI costs remain relatively firm, and high-grade NPI prices are expected to remain stable with a weak trend.