High-Grade NPI Costs Strongly Supported, Downstream Demand Recovers, Prices Fluctuate Upward [NPI Daily Review]

SMM March 17 News,

      On March 17, the SMM 8-12% high-grade NPI average price was 1,011.5 yuan/mtu (ex-factory, tax included), up by 2.5 yuan/mtu from the previous working day. Supply side, domestically, as the rainy season in the Philippines nears its end, it will still take time for nickel ore supply to increase significantly. Nickel ore prices remain stable, and the weak production drive for smelters has resulted in low production levels. In Indonesia, recent abundant rainfall combined with tight nickel ore supply has led to low nickel ore inventory levels at smelters. Despite the release of new capacity, production has only seen a slight increase. Demand side, stainless steel futures orders have been relatively strong. Additionally, as stainless steel scrap prices rise along with finished product prices, the economic advantage of stainless steel scrap has weakened, leading to improved sentiment for high-grade NPI procurement among stainless steel mills, with market inquiries becoming more active. In the short term, high-grade NPI prices are supported by stronger costs and tighter supply and demand, and prices are expected to remain relatively stable with a strong trend.