Supply side, domestically, Philippine nickel ore prices are expected to rise, pushing up the cost line for domestic smelters, which face an increased risk of losses and are expected to operate at low production schedules. In Indonesia, a major production area has adjusted its production pace to reduce operating loads. Additionally, high-grade nickel ore resources in Indonesia are currently tight, with grades in major production areas generally declining, and metal content is expected to decrease.
Demand side, stainless steel spot prices remained stable, with sluggish market transactions. Stainless steel mills, having stocked up inventories earlier and benefited from improved cost-effectiveness of stainless steel scrap, have shown weaker demand for high-grade NPI.
In the short term, the high-grade NPI market sentiment is expected to pull back. However, supported by costs and tight circulating resources, prices are still expected to fluctuate upward with a relatively stable trend.
![[SMM Analysis] Influenced by macro sentiment, MHP and high-grade nickel matte prices declined this week.](https://imgqn.smm.cn/usercenter/CWsEw20251217171732.jpeg)
