SMM reported on May 8,
that on May 8, the average price of SMM 8-12% high-grade NPI was 947.5 yuan/mtu (ex-factory, tax included), down 3.5 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 line of some smelters. On this basis, the ramp-up of new capacity or production may slow down, and there is an expectation of a slight decline in production. Demand side, after the holiday, the stainless steel market has performed relatively average. The plate prices of mainstream steel mills remain at pre-holiday levels, with spot transactions mainly concluded at lower prices. Stainless steel mills maintain 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.
