High-Grade NPI Costs Provide Strong Support, Short-Term Prices Remain Stable [NPI Daily Review]

SMM March 28 News,

      On March 28, the average price of SMM 8-12% high-grade NPI was 1,028 yuan/mtu (ex-factory, tax included), up 2.5 yuan/mtu from the previous working day. Supply side, domestically, smelters' raw material inventory remained low, shipments from the Philippines during the late rainy season still required time, and some smelters underwent production line maintenance, resulting in low production. In Indonesia, nickel ore mining and output fell short of expectations, with some smelters' raw material inventory at low levels, coupled with low-load operation of some production lines in major production areas. Although new capacity was released, the increase in production was relatively limited. Demand side, spot stainless steel performance was weak, and the price of raw material stainless steel scrap decreased, restoring some economic advantages, which put pressure on the price of high-grade NPI. However, from the perspective of cost and market circulation resources, high-grade NPI is expected to remain stable in the short term.