SMM reported on May 6,
that on May 6, the average price of SMM 8-12% high-grade NPI was 958 yuan/mtu (ex-factory, tax included), down 9.5 yuan/mtu from the previous working day. Supply side, domestically, some smelters that had undergone maintenance earlier began to resume production. Coupled with a significant increase in port arrivals of nickel ore from the Philippines, the raw material inventory of smelters was replenished. However, due to deepening losses, the increase in production was relatively limited. In Indonesia, the domestic trade premium for nickel ore continued to hold up well. The decline in finished product prices had already breached the cost line for some smelters. On this basis, the ramp-up of new capacity may slow down, and there is an expectation of a slight decline in production. Demand side, after the holiday, the stainless steel market performed relatively average. The plate prices of mainstream steel mills remained at pre-holiday levels, with spot transactions mainly concluded at low prices. Stainless steel mills maintained low prices for forward raw material purchases. Today, a stainless steel mill in South China launched another tender, with the tender price hitting a new low. It is expected that against the backdrop of a decline in stainless steel mills' production schedules, the price of high-grade NPI will remain under pressure in the short term.
![[SMM Analysis] Influenced by macro sentiment, MHP and high-grade nickel matte prices declined this week.](https://imgqn.smm.cn/usercenter/CWsEw20251217171732.jpeg)