High-Grade NPI Costs Remain Firm; Short-Term Prices May Still Have Room for Recovery [NPI Daily Review]

SMM, January 20 -

      On January 20, the SMM 8-12% high-grade NPI average price was 940 yuan/mtu (ex-factory, tax included), up 1 yuan/mtu from the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward, with domestic smelters still operating at a loss, and production is expected to slightly decline. In Indonesia, with the release of some new capacity and the additional output from the conversion of some high-grade nickel matte, high-grade NPI production is expected to slightly increase. Demand side, as the stainless steel market approaches the Chinese New Year holiday, stainless steel spot prices remain stable. Top-tier enterprises have sufficiently stocked up on raw materials before the holiday, and only some small and medium-sized stainless steel mills are making spot orders. High-grade NPI demand has not shown a significant recovery. Cost support for high-grade NPI remains relatively firm, and in the short term, as the market approaches the Chinese New Year holiday, prices may still have room for recovery.