Stainless Steel Mills Set New Highs for High-Grade NPI Purchase Prices; Market Prices May Fluctuate Upward in the Short Term [NPI Daily Review]

SMM March 5 News,

      On March 5, the SMM 8-12% high-grade NPI average price was 987 yuan/mtu (ex-factory, tax included), up 2 yuan/mtu from the previous working day. Supply side, domestically, domestic smelters remain in a loss-making phase, with some undergoing maintenance, and overall production is 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 still expected to increase, leading to 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. Today, stainless steel mills were active in procurement, with transaction prices hitting new highs. In the short term, high-grade NPI prices are expected to remain relatively stable with a strong trend.