High-Grade NPI Discount Widens as Refined Nickel Prices Rise and Steel Mills Pressure NPI Spot Prices

Driven by price hikes for 300-series products led by Yusco and Tang Eng, Taiwan's sluggish stainless steel spot market saw a noticeable revival this week with increased buying activity. While some distributors and major traders remain cautious due to weak demand and high-priced inventory, rising replacement costs have pushed dealers to raise selling prices. Small traders and end users began restocking, with orders in the first three days of the week surpassing the entire first half of the month. Trading volume remains modest overall, but the market shows clear signs of life, with future stability hinging on demand recovery, mill pricing strategies, and trends in imported materials from Vietnam.

Indonesia’s key nickel-producing regions are expected to see generally manageable weather this week. Central Sulawesi (Morowali) is forecast to receive 10–30 mm of rainfall, with minimal disruption expected. Halmahera may receive 30–60 mm, with heavier showers potentially causing temporary disruptions to mining and logistics, while Obi Island is forecast at 10–25 mm, supporting largely normal operations. In the Philippines, Palawan is forecast at 30–60 mm, with moderate impact on mine-road transportation and vessel loading. Homonhon Island is expected to receive 10–20 mm, supporting normal operations. Zambales faces the highest weather risk, with 80–140 mm of rainfall and frequent thunderstorms, while stronger winds may disrupt mining, transportation and port operations, particularly on August 10–12.

Chinese Taiwan's stainless steel mills have announced August price increases of NT$1,500/ton for 304 flat-rolled products, initiating active pricing negotiations with downstream distributors while maintaining firm cost-support price levels. Despite sluggish market demand, producers are holding price floors supported by LME nickel prices stabilizing above US$17,000 in July and August, steady Indonesian raw material quotations, and a weakening New Taiwan Dollar trading near 32.447 against the US dollar. Distributor purchasing direction is expected to become clearer as negotiations conclude.