Spot Order Circulation Resources Tighten in the Market, High-Grade NPI Transaction Prices Rebound [NPI Daily Review]

SMM, January 15—

      On January 15, the SMM 8-12% high-grade NPI average price stood at 935.5 yuan/mtu (ex-factory, tax included), up by 2 yuan/mtu from the previous trading day. Supply side, domestically, high-grade NPI prices fluctuated downward, with weak production momentum among domestic smelters, and production is expected to decline. In Indonesia, with the release of some new capacity and additional output from the conversion of some high-grade nickel matte, high-grade NPI production is expected to increase slightly. Demand side, current stainless steel prices stabilized and rebounded, with steel mill profits recovering. The expected production cuts this month are likely to ease compared to earlier production schedules. The economic advantage of high-grade NPI over stainless steel scrap has expanded, leading to an increased usage ratio compared to last month. Circulating resources in the market have tightened due to an increased proportion of long-term contracts with steel mills. Today's market transaction prices were boosted compared to the previous session, and high-grade NPI prices are likely to stabilize and rebound in the short term.