High Nickel Ore Prices may Force the NPI Plants to Suspend Production

SHANGHAI, Nov 29 (SMM) - On November 29, NPI market trading was sluggish. The average price of SMM Ni 8-12% high-grade NPI was 1,350 yuan/mtu (ex-factory, tax included), flat from the previous trading day. Nickel ore supply plummeted due to the rainy season, and mines held their prices firm. NPI demand from the steel mills was poor, resulting in a slight accumulation of the in-plant inventories in NPI factories. And the NPI plants got high costs as they used the high-priced nickel ore. In the future, if the downstream sectors did not improve and NPI plants could not buy low-priced and high-quality nickel ore, the NPI factories might suspend their production for one to two months for maintenance after the raw materials are used up. NPI prices will remain rangebound with some declines in the near future.