[NPI Daily Review] Firm Prices and Low-Priced Sources Coexist, Short-Term Volatility Unlikely to Change

SMM May 14,

   May 14, the SMM high-grade NPI market sentiment index was 2.85, flat MoM, the high-grade NPI upstream sentiment index was 3.37, flat MoM, and the high-grade NPI downstream sentiment index was 2.33, flat MoM. Today, the high-grade NPI market overall remained in a high-level gaming pattern, with the price range fluctuating slightly and the center staying stable, while supply-demand divergence remained evident. Supply side, high-price transactions drove partial sentiment recovery, and some enterprises had a strong willingness to hold prices firm, but some traders still saw low-priced cargoes flowing out due to the impact of falling stainless steel prices. Demand side, the stainless steel market weakened, and steel mills' procurement attitudes diverged. Some steel mills, affected by steel scrap price cuts, saw NPI procurement transaction prices and indicative prices continuing to edge lower, with insufficient acceptance of high prices. Overall, in the short term, the NPI market was supported by tight spot cargo supply, making significant price pullbacks unlikely. However, weak downstream demand and insufficient end-user orders limited upside room. It is expected that the market will continue to hover at highs in the near term, and sustained attention should be paid to the impact of stainless steel sales and futures trends on procurement pace.