SMM reported on May 7,
that on May 7, the average price of SMM 8-12% high-grade NPI was 951 yuan/mtu (ex-factory, tax included), down 7 yuan/mtu from the previous working day. Supply side, domestically, some smelters that underwent maintenance earlier have resumed production. Coupled with a significant increase in port arrivals of nickel ore from the Philippines, the raw material inventory of smelters has been replenished. However, due to deepening losses, the increase in production is relatively limited. In Indonesia, the domestic trade premium for nickel ore continues to hold up well. The decline in finished product prices has already breached the cost lines of some smelters. On this basis, the ramp-up of new capacity may slow down, and there is an expectation of a slight decline in production. Demand side, the stainless steel market has performed relatively modestly after the holiday. The mainstream steel mills' plate prices remain at pre-holiday levels, with spot transactions mainly concluded at lower prices. Stainless steel mills are maintaining low prices for forward raw material purchases. It is expected that in the context of a decline in stainless steel mills' production schedules, the short-term price of high-grade NPI will remain under pressure.
