Policy transmission may still require a cycle to materialize, with short-term market transaction prices under pressure [[Daily Review of NPI]]

SMM reported on May 13,

      that on May 13, the average price of SMM 8-12% high-grade NPI was 942.5 yuan/mtu (ex-factory, tax included), unchanged from the previous working day. Supply side, domestically, some smelters that had undergone maintenance earlier began to resume 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 was relatively limited. In Indonesia, the current premium for Indonesian nickel ore remained generally stable with slight rise, providing strong cost support for smelters. However, influenced by the decline in finished product prices that had fallen below the cost line, some production lines in certain regions had reduced their production loads, and output was expected to decline slightly. Demand side, due to the continuous losses in stainless steel production earlier, some steel mills had reduced their crude steel output, leading to a weakening in demand for high-grade NPI. Additionally, the economic advantage of stainless steel scrap still existed, causing the transaction prices in the high-grade NPI market to continuously weaken. Furthermore, it still took time for macroeconomic policies to be implemented in the industry, and it was expected that high-grade NPI prices would remain under pressure in the short term.