Market inquiries are quite active, NPI prices may run strong [NPI Daily Review]

On August 27, the price of SMM 8-12% high-grade NPI averaged 1,001 yuan/mtu (ex-factory, tax included), up 1 yuan/mtu from the previous working day. Supply side, domestically, although NPI prices have dropped, the decline is limited. As the motivation for smelters to produce remains, August production may hold stable. In Indonesia, new capacities have been gradually put into operation, and production has started to ramp up. However, due to the high volatility of nickel ore prices and weak finished product prices, the production ramp-up is limited. Demand side, entering late August, the demand for long-term raw material restocking by steel mills may be released. The market has strong expectations for the traditional peak season, and inquiries are quite active. It is expected that NPI prices may run strong in the short term.