The weekly average price of SMM 8-12% high-grade NPI was 1,002.9 yuan/mtu (ex-factory, tax included), down 8.9 yuan/mtu WoW. The Indonesian NPI FOB index fell 0.4 USD/mtu WoW. This week, the transaction prices of NPI continued to drop slightly.
Supply side, domestically, the current NPI prices dropped slightly, but the production motivation of smelters remained, with no expectation of production cuts. In Indonesia, the tight supply of nickel ore persisted, and new capacity was still being commissioned within the month. Given the low raw material inventory at smelters, the production ramp-up was expected to be limited.
Demand side, with the traditional peak season for stainless steel consumption approaching, social inventory slightly increased this week. With strong market expectations for the future, steel mills were actively stocking up on NPI. Major domestic enterprises were purchasing actively, leading to a vibrant market.
In summary, from a fundamental perspective, there is an expectation of strengthening supply and demand for NPI. However, due to the low and fluctuating prices of stainless steel futures and spot prices, raw material prices are under pressure. It is expected that with high costs and good demand support, the downside for NPI prices will be limited by the negative feedback from low stainless steel prices.
