As Chinese New Year Approaches, Upstream and Downstream Transactions Weaken; High-Grade NPI Prices Remain Relatively Stable in the Short Term [NPI Daily Review]

SMM, January 21 -

      On January 21, the average price of SMM 8-12% high-grade NPI was 940.5 yuan/mtu (ex-factory, tax included), up by 0.5 yuan/mtu compared to the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward, and domestic smelters remained in a loss-making phase, with production expected to slightly decline. In Indonesia, with the release of some new capacity and the additional output from partial conversion to high-grade nickel matte, high-grade NPI production is expected to slightly increase. Demand side, the stainless steel market is approaching the Chinese New Year holiday, with stainless steel spot prices remaining stable. Top-tier enterprises have sufficiently stocked up on raw materials before the holiday, while only some small and medium-sized stainless steel mills are making spot orders. High-grade NPI demand has not shown a significant recovery. High-grade NPI costs remain firmly supported, and in the short term, as the market approaches the Chinese New Year holiday, prices may still have room for recovery.