NPI Sellers Cut Their Prices under Huge Pressure

SHANGHAI, Feb 27 (SMM) - NPI market witnessed several transactions last week, and the traded price dropped to 1,344-1,355 yuan/mtu (tax included, delivery to factory). Last Friday, the SMM average price of 8-12% high-grade NPI stood at 1,345 yuan/mtu (ex-factory, including tax), down 5 yuan/mtu from the previous Friday. On the demand side, spot stainless steel liquidity increased with the supporting macro policies, and the consumption grew slightly, which pushed up the profit margins of stainless steel mills. However, the fall in NPI prices failed to curb the stainless steel mills' losses since the companies generally purchased high-priced NPI before the Chinese New Year. On the supply side, the NPI stocks were mainly held by traders. And some intended to dump their goods as the nickel prices crashed in the second half of the week. The spot market saw fewer small orders of Indonesia NPI owing to the shipping rhythm. SMM survey showed that some Indonesia NPI will arrive at ports intensively at the end of February, which may enable some stainless steel mills to lower the purchase prices further. Ore prices stood high, causing losses in some NPI plants. NPI prices are expected to fall to 1,325-1,345 yuan/mtu (ex factory, including tax) this week.