Market Sentiment for High-Grade NPI Cools Down; Strong Support Below Keeps Prices Relatively Stable With Strong Trend [NPI Daily Review]

SMM March 19 News,

      On March 19, the SMM 8-12% high-grade NPI average price was 1,017.5 yuan/mtu (ex-factory, tax included), up by 3 yuan/mtu from the previous working day. Supply side, domestically, as the rainy season in the Philippines approaches its end, it will still take time for nickel ore supply to increase significantly. Nickel ore prices remain stable, and smelters have weak production incentives, with production operating at low 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 among stainless steel mills for high-grade NPI procurement, 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 in the near term.