High-Grade NPI Costs Strongly Supported, Limited Downside Room for Short-Term Prices [NPI Daily Review]

SMM reported on January 10 that

      on January 10, the SMM 8-12% high-grade NPI average price stood at 933.5 yuan/mtu (ex-factory, tax included), unchanged from the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward with a weak trend. As losses widened for traditional domestic 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. The phenomenon of converting high-grade nickel matte to high-grade NPI persists, and 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 has 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 operate stably with a weak trend.