SMM reported on June 4 that
on June 4, the average price of SMM 8-12% high-grade NPI was 956 yuan/mtu (ex-factory, tax included), up 1 yuan/mtu from the previous working day. Supply side, domestically, nickel ore prices in the Philippines remained firm, imposing a significant cost burden on smelters. Driven by the resumption of production at a smelter in North China after maintenance, production saw a slight increase. In Indonesia, the premium for domestic trade saprolite ore remained firm, with a slight decline in HPM. Smelters enjoyed strong cost support from nickel ore. The struggle to raise finished product prices kept mainstream smelters in a loss-making position. However, due to weak incentives for producing high-grade nickel matte, the overall decline in production was expected to be limited. Demand side, stainless steel entered a seasonal active destocking phase. During the Dragon Boat Festival, mainstream stainless steel mills lowered their guidance prices for cold-rolled and hot-rolled products, putting pressure on raw material prices. Meanwhile, due to limited availability of low-priced supplies in the market and strong cost support for high-grade NPI, the price center for procurement to meet the immediate needs of some steel mills shifted upward. Overall, it is expected that high-grade NPI prices may come 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)
