NPI Sellers Cut Their Prices under Huge Pressure

SHANGHAI, Feb 20 (SMM) - NPI market witnessed several transactions last week, and the overall traded price dropped. Last Friday, the SMM average price of 8-12% high-grade NPI stood at 1,350 yuan/mtu (ex-factory, including tax), down 20 yuan/mtu from the previous Friday.  The traded prices moved between 1,365-1,370 yuan/mtu (tax included, delivery to factory). On the demand side, NPI consumption by the stainless steel sector did not show a strong recovery as expected after the Lantern Festival. The stainless steel mills generally suffered loss, and some planned to reduce production. The NPI demand may continue to weaken. NPI sources are generally stored in the traders' hands. Stainless steel mills were relatively cautious in buying, while the NPI plants maintained their production, pushing up the overall NPI inventory after the Chinese New Year (CNY). Some traders may cut their prices to ship amid the falling NPI prices, and some invisible inventories may flow into the market. Small orders of Indonesia NPI were fewer owing to the shipping rhythm. In terms of costs, some NPI factories held low in-plant inventories of nickel ore, and they bore high costs during the rainy season in the Philippines. NPI prices will extend the fall this week and move between 1,340-1,360 yuan/mtu (ex-factory, including tax).