SMM June 4,
June 4, the SMM high-grade NPI market sentiment index was 2.45, down 0.04 MoM, the high-grade NPI upstream sentiment index was 2.97, down 0.07 MoM, and the high-grade NPI downstream sentiment index was 1.94, flat MoM. Today, the NPI market showed a pattern of weakening futures and firm spot prices. The decline in futures prompted some traders to slightly lower their offers, but spot cargo remained supported by tight supply. Divergence on the procurement side was evident, as steel mills mostly relied on average-price-based procurement, with premiums clearly tiered by grade: low-grade sources generally traded at discounts, while high-grade sources such as 11% and 13% carried varying degrees of premiums. A price spread formed between downstream buyers' lower target prices and sellers' higher offers, while tightening spot supply underpinned high-priced resources. Demand side, dragged by the off-season, stainless steel end-user shipments were weak, and bearish sentiment over the longer term was rising. Meanwhile, the market was awaiting the implementation details of export-related policies, with a strong wait-and-see atmosphere, and most participants held off on firm price offers. Overall, tight high-grade supply supported locally elevated prices, while sluggish off-season demand and policy uncertainty weighed on overall transactions. In the near term, the market was expected to maintain a fluctuating trend characterized by divergent offers and stagnant trading.
![[SMM Stainless Steel Flash] LME Nickel and China Stainless Steel Futures Strengthen, but Market Impact Remains Limited](https://imgqn.smm.cn/usercenter/yUOUz20251217171732.jpg)
