Strong cost support coupled with limited circulation, short-term high-grade NPI prices remain stable [Daily Review of NPI]

SMM reported on May 26,

      that on May 26, the average price of SMM 8-12% high-grade NPI was 951 yuan/mtu (ex-factory, tax included), unchanged from the previous working day. Supply side, domestically, nickel ore prices in the Philippines remained firm, imposing a significant cost burden on smelters, with domestic production continuing to operate at a low level. In Indonesia, the latest round of HPM for domestic trade nickel ore in Indonesia saw a slight decline, coupled with the generally stable with slight rise in the premium for ongoing order negotiations. The low finished product prices have led smelters to face an inverted margin situation, with production expected to decrease slightly. Demand side, the mainstream stainless steel mills' list prices remained unchanged WoW from the previous week, with transactions mainly occurring at lower market prices. Downstream demand was impacted by tariff adjustments and the current off-season in the stainless steel market, resulting in weak purchase willingness for high-grade NPI among steel mills. However, supported by underlying cost pressures and a market where liquidity remains tight, the price center has edged up slightly. Overall, it is expected that high-grade NPI prices will remain stable in the short term.