Low-Priced High-Grade NPI Disappears From the Market; Prices May Fluctuate Upward in the Short Term [NPI Daily Review]

SMM reported on February 27 that

      on February 27, the average price of SMM 8-12% high-grade NPI was 980 yuan/mtu (ex-factory, tax included), up 1 yuan/mtu from the previous trading day. Supply side, domestically, domestic smelters remain in a loss-making phase, and production schedules are expected to operate at low levels. 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 ore grades in major production areas generally declining, and metal content is expected to trend downward. Demand side, stainless steel spot prices continued to decline, 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. However, supported by costs and tight spot supply, prices are expected to remain relatively stable with a strong trend in the short term.