Stainless steel spot prices stabilised at the bottom, NPI downstream adopted a wait-and-see attitude towards procurement [NPI Daily Review]

On July 3, the prices of SMM 8%-12% high-grade NPI averaged 965.5 yuan/mtu (ex-factory, tax included), flat compared to the previous working day. Supply side, the domestic NPI prices fluctuated downward in June, and market expectations for the future gradually weakened. It is expected that domestic NPI production may decline in July. In Indonesia, current NPI prices have shown a significant drop. Though high-grade nickel matte prices declined, there was still a drive for production conversion from NPI to high-grade nickel matte. With the new production lines in Indonesia, Indonesian NPI production is expected to climb in July, but the increase will be limited. Demand side, the transaction prices of NPI at a steel mill in South China hit a new low, causing the market focus to drop again. Entering the off-season for consumption, stainless steel mills may reduce production amid weak expectations. Therefore, they adopted a wait-and-see stance towards procurement. In summary, NPI supply will remain stable in the short term, but the prices will be under pressure due to weak demand.