[NPI Daily Review] Policy Uncertainty Intensified, Strong Wait-and-See Sentiment Prevailed in the Market

SMM June 1 News,

   June 1 News, the SMM high-grade NPI market sentiment index was 2.5, down 0.04 MoM; the high-grade NPI upstream sentiment index was 3.05, down 0.06 MoM; the high-grade NPI downstream sentiment index was 1.94, down 0.03 MoM. Today, the NPI market continued its sluggish trading pattern overall, with a stalemate in the tug-of-war between longs and shorts, and the market lacked clear directional guidance. Sellers' mainstream quotations remained in a relatively high range, but downstream buyers' intended prices were on the low side, resulting in a notable price spread between bid and ask, with significant divergence in market negotiations. Sentiment side, ongoing policy uncertainty related to Indonesia continued to disturb the market, participants adopted a cautious trading mentality, wait-and-see sentiment intensified, and willingness to actively trade was notably insufficient. Demand side, continued under pressure, with downstream stainless steel finished product shipments performing weakly. End-user profitability and order pressure transmitted to the raw material side, leading steel mills to adopt conservative procurement strategies, primarily purchasing on an as-needed basis, with weak acceptance of high-priced raw materials. Overall, the current market lacked effective transaction support, with policy uncertainty and weak end-use demand jointly suppressing market activity. In the short term, NPI prices were likely to continue moving sideways with a weak bias at elevated levels.