[Ni] NPI Price Remains Stable

SHANGHAI, Apr. 2 (CBI China) -- This week, the nickel pig iron (NPI) price stabilized in Shangdong province with the ex-works price (including tax) at RMB 2,750-2,850/mt. However, the producers were pessimistic about the market outlook.

    As the stainless steel market remained depressed, the steel mills cut production and reduced the purchase volumes of raw materials including NPI, so the NPI price has fallen for two straight months since Chinese New Year. In the mean time, the price of stainless steel has been in downward track, and the steel mills continued to lower the purchase price of NPI in order to reduce the cost, so the market price of NPI continued to fall.

    Market sources report that recently a portion of stainless steel scraps with nickel and chromium content from Japan will enter Chinese market and this portion of scraps with very cheap price were suitable for the production of 200# stainless steel. The market insiders reveal the steel mills will be very interested in these scraps as they were striving to cut costs, which will likely exert negative impact on domestic NPI market.

    Although generally no profits for the producers will exist with regard to current NPI market price, the producers said they were still uncertain about the market outlook. If the stainless steel market remains sluggish, the price is more likely to decline further in the foreseeable future.

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