NPI Prices Bear Pressure from High Costs and Dropping Stainless Steel Prices

SHANGHAI, Feb 13 (SMM) - Last Friday, the SMM average price of 8-12% high-grade NPI stood at 1,370 yuan/mtu (ex-factory, including tax), flat from the previous trading day and flat from the previous Friday. The market witnessed some NPI transactions last week, but the traded prices varied greatly, ranging from 1,385 yuan/mtu to 1,400 yuan/mtu. The traded prices were on a downward trend post the Chinese New Year (CNY) holiday. The NPI demand picked up shortly with the production resumption of stainless steel mills after the Lantern Festival, but the overall consumption recovered critically slowly. Besides, the low stainless steel prices also put great pressure on the NPI market. On the supply side, the NPI output in January increased, which mainly came from the integrated stainless steel mills. Therefore, the market supply was basically stable. Most of the NPI stocks in the domestic market are in the hands of traders. And the traders generally held their prices firm because of their high purchase prices. The market almost got no Indonesian NPI. In terms of costs, some NPI factories held low in-plant inventories of nickel ore. The rainy season in the Philippines pushed up the ore prices. NPI prices are expected to move rangebound between 1,355-1,375 yuan/mtu (ex factory, including tax) this week.