SMM reported on May 15,
that on May 15, the average price of SMM 8-12% high-grade NPI was 941.5 yuan/mtu (ex-factory, tax included), unchanged 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, influenced by the decline in finished product prices that has fallen below the cost line, some production lines in certain regions have reduced their operating loads, and production 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 a weakening in demand for high-grade NPI. The transaction prices in the high-grade NPI market have been continuously weakening. Additionally, it still takes time for macroeconomic policies to be implemented in the industry, and it is expected that high-grade NPI prices 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)
