High-Grade NPI's Economic Advantage Slightly Recovers; Market Prices May Still Fluctuate Upward in the Short Term [NPI Daily Review]

SMM March 3 News,

      On March 3, the SMM 8-12% high-grade NPI average price was 984 yuan/mtu (ex-factory, tax included), up 1 yuan/mtu from the previous working day. Supply side, domestically, domestic smelters remain in a loss-making phase, with some undergoing maintenance, leading to overall production expected to operate at low levels. In Indonesia, current nickel ore output has fallen short of expectations, coupled with production load adjustments in some major production areas. However, driven by ramp-ups in new capacity, production is expected to see a slight increase. Demand side, the upward momentum for stainless steel spot is weak, but as stainless steel mills gradually resume operations after the holiday, production is expected to increase, supporting a relatively optimistic demand for high-grade NPI. From the perspective of raw material cost-effectiveness, the recent rise in stainless steel scrap prices has weakened its competitiveness against high-grade NPI. In the short term, high-grade NPI prices are expected to remain relatively stable with a strong trend.