As steel mills' procurement cycle approaches, NPI prices may rise [NPI Daily Review]

On May 21, SMM 8-12% high-grade NPI averaged 977.5 yuan/mtu (ex-factory, including tax), up 2.5 yuan/mtu from the previous working day. On the supply side, as Indonesian nickel ore approvals in May still need time, Indonesian NPI smelters struggled to ramp up production amid raw material shortage. Domestically, some NPI smelters resumed production after maintenance, but the output was limited due to high NPI production costs. Domestic NPI smelters still maintained a low operating rate. On the demand side, steel mills may begin to purchase raw materials for future use. Therefore, NPI prices are expected to rise in the short term.