The stainless steel market is expected to run weak, with sluggish purchases, putting pressure on NPI prices [NPI Daily Review]

On June 26, the price of SMM 8%-12% high-grade NPI averaged 968.5 yuan/mtu (ex-factory, tax included), down 3 yuan/mtu from the previous working day. Supply side, domestically, the production proportion of traditional NPI smelters increased in June, while the NPI output of integrated stainless steel mills decreased, primarily as high nickel ore prices made externally sourced high-grade NPI more cost-effective for stainless steel production compared to integrated production. The domestic NPI circulating supply increased compared to May. In Indonesia, the raw material shortage for NPI smelters eased compared to May. The expected increase in June production and the new Indonesian RKAB approval quotas allow smoother exports compared to May. Therefore, NPI exports to China may increase in June. Demand side, in the short term, the downstream stainless steel market has entered a consumption off-season, with weak destocking performance in social inventories. Stainless steel spot prices were under pressure. With weak expectations from steel mills, NPI purchasing prices continued to decline. In summary, the current market has more NPI resources available compared to May, while downstream demand gradually weakens. It is expected that NPI prices will remain under pressure and run weak in the short term.