Performance of the stainless steel market falls short of expectations; short-term high-grade NPI prices may be in the doldrums [NPI Daily Review]

SMM News on April 28,

      On April 28, the average price of SMM 8-12% high-grade NPI was 967.5 yuan/mtu (ex-factory, tax included), down 1.5 yuan/mtu from the previous working day. Supply side, domestically, smelter profits have begun to tighten, and the extent of losses at some high-cost smelters has deepened. With weak production incentives, production has remained at a low level. In Indonesia, the premium for Indonesia's local ore has remained stable. The cost line for smelters has been generally stable with slight rise, while the decline in spot prices has already breached the cost line for some smelters. Production incentives have weakened in tandem with the domestic situation, and overall production has remained stable. Demand side, stainless steel spot prices are at a low level in recent years, and the immediate raw material costs are high, leading to losses. In the short term, downstream stainless steel mills have weak demand for raw material procurement, and the center of market transactions continues to move lower. It is expected that high-grade NPI prices will remain under pressure in the short term.