High-Grade NPI Cost Support Remains, Limited Downside Room for Short-Term Prices [NPI Daily Review]

SMM reported on January 9,

      On January 9, the SMM 8-12% high-grade NPI average price was 933.5 yuan/mtu (ex-factory, tax included), down by 1 yuan/mtu from the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward. With the widening losses of traditional domestic smelters, production is expected to weaken. In Indonesia, current NPI smelters 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 decreased MoM, and top-tier enterprises have already signed a large number of long-term contracts for raw materials. Spot order demand in the market has weakened. However, the cost support for NPI remains relatively firm, and high-grade NPI prices are expected to remain stable with a weak trend.