SMM reported on May 12,
that on May 12, the average price of SMM 8-12% high-grade NPI was 942.5 yuan/mtu (ex-factory, tax included), down 1.5 yuan/mtu from the previous working day. Supply side, domestically, some smelters that underwent maintenance earlier have resumed production, with output gradually increasing. However, due to the intensified losses of smelters caused by the decline in finished product prices, the overall increase in production is relatively limited. In Indonesia, the current premium for Indonesian nickel ore remains generally stable with slight rise, providing strong cost support for smelters. However, due to the impact of finished product prices falling below the cost line, some production lines in certain regions have reduced their production loads, and output is expected to decline slightly. Demand side, due to the continuous losses in stainless steel production earlier, some steel mills have reduced their crude steel output, leading to weaker demand for high-grade NPI. Additionally, the economic advantage of stainless steel scrap still exists, causing the transaction prices of high-grade NPI in the market to continuously weaken. It is expected that the price of high-grade NPI will remain under pressure in the short term.
