High-Grade NPI Market Transactions Cool Down, Spot Prices Expected to Fluctuate Downward in the Short Term [NPI Daily Review]

Today, SMM 8-12% high-grade NPI average price was 959 yuan/mtu (ex-factory, tax included), down 2 yuan/mtu from the previous working day. Supply side, domestically, the Philippines has entered the rainy season, leading to a slowdown in nickel ore shipments compared to earlier periods. The CIF price of Philippine nickel ore remains firm. Domestic integrated steel mills are experiencing significant losses on NPI production, making external purchase more economically advantageous, and production is expected to decline. Traditional smelters' production remains stable. In Indonesia, new capacity continues to come online this month, and previously commissioned production lines have reached full capacity. High-grade nickel matte has started to incur losses, leading to a switch to high-grade NPI production, contributing to some incremental output. Demand side, stainless steel has entered the off-season. Downstream processing enterprises' operating rates have weakened compared to earlier periods. Stainless steel mills are actively destocking, continuously lowering guidance prices. The raw material restocking cycle for stainless steel mills has been extended. The transaction atmosphere in the high-grade NPI market is poor, and in the short term, high-grade NPI transaction prices are under pressure.