Demand for high-grade NPI may decline, with short-term high-grade NPI prices in the doldrums [NPI Daily Review]

SMM reported on June 25,

      that on the same day, the average price of SMM 8-12% high-grade NPI was 914 yuan/mtu (ex-factory, tax included), down 1 yuan/mtu from the previous working day. Supply side, domestically, the price of nickel ore from the Philippines continued to fluctuate upward, resulting in severe losses for domestic smelters. Some smelters reduced their production loads, with expectations of a decline in output. In Indonesia, the premium for pyrometallurgical nickel ore in the domestic trade remained firm. The falling price of finished products led to continued losses for smelters. However, currently, pyrometallurgical high-grade nickel matte is also in a loss-making phase, and downstream demand is weaker than that for high-grade NPI, so output may see a slight increase. Demand side, destocking of social inventory remained relatively slow. Stainless steel prices continued to test historical lows, with mainstream steel mills showing weak demand for raw material procurement. Additionally, with the expanding economic advantage of stainless steel scrap as a raw material, the demand for high-grade NPI may weaken. Overall, in the short term, stainless steel is expected to focus on active destocking, with prices likely to remain fluctuating at lows. The raw material side is under significant pressure, and the price of high-grade NPI may continue to be in the doldrums.