SMM August 22 News,
On August 22, the average price of SMM 10-12% high-grade NPI was 929 yuan/mtu (ex-factory, tax included), up 1 yuan/mtu from the previous working day. The market sentiment factor for high-grade NPI was 2.3, up 0.01 MoM. Supply side, nickel ore prices remained stable this week, while auxiliary material prices continued to rise. The firm cost line of smelters provided bottom support for high-grade NPI prices. Meanwhile, there was a relative shortage of 8-10% grade high-grade NPI, leading to an increase in premiums for 8-10% grade high-grade NPI under market adjustments. Demand side, the futures center of stainless steel pulled back, and market sentiment weakened. Additionally, downstream enterprises still had a long inventory turnover period. With slow inventory digestion and peak season performance falling short of expectations, the purchasing sentiment of stainless steel mills was suppressed, further capping the upside potential of high-grade NPI prices. Overall, cost support pushed high-grade NPI prices to continue exploring higher levels, but with end-use consumption below expectations and weak fundamental support, it is expected that the price increase of high-grade NPI will be limited next week.
