The center of the high-grade NPI market still has room to decline, with transaction prices in the short-term market under pressure [Daily Review of NPI]

SMM reported on May 14,

      that on May 14, the average price of SMM 8-12% high-grade NPI was 941.5 yuan/mtu (ex-factory, tax included), down 1 yuan/mtu 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 fell 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. The transaction prices in the high-grade NPI market had continued to decline. Additionally, it still took time for macro policies to be implemented in the industry, and it was expected that high-grade NPI prices would remain under pressure in the short term.