Downstream Purchasing Activity for Nickel Intermediate Products Increased, Tight Supply and Demand Drove Prices Higher

[SMM Analysis: Weak End-User Demand but Firm Costs, High-Grade NPI Prices Rose Steadily] The average SMM 10-12% high-grade NPI price rose 2.2 yuan/nickel unit WoW to 1,089.9 yuan/nickel unit (ex-factory, tax included), while the average Indonesian NPI FOB index price increased $0.39/nickel unit WoW to $138.93/nickel unit. This week, mainstream steel mills released tender prices, and the market came under brief pressure.

Affected by the supply-demand relationship, MHP and high-grade nickel matte nickel prices rose this week

As of now, Indonesia’s MHP nickel FOB price was $15,379/mt Ni, and Indonesia’s MHP cobalt FOB price was $49,879/mt Co. MHP payables (against the SMM battery-grade nickel sulphate index) were 86.5-87, and the MHP cobalt element payable indicator (against SMM refined cobalt (Rotterdam warehouse)) was 91. Indonesia’s high-grade nickel matte FOB price was $15,736/mt Ni.

[SMM Nickel Flash] After the holiday, refined nickel prices pulled back, while high-grade NPI prices remained elevated, and the average discount of high-grade NPI versus refined nickel narrowed to 336.7 yuan/nickel unit. High-grade NPI prices are expected to still have upside room next week, while refined nickel prices are expected to decline MoM. The average discount of high-grade NPI versus refined nickel is expected to continue narrowing; however, supported by new energy orders, the conversion of NPI to high-grade nickel matte still has momentum.

Intermediate Product Nickel Market Trading Was Sluggish, Awaiting Guidance From Papua New Guinea Tender Results

As of now, the FOB price of Indonesian MHP nickel was $15,418/mt Ni in metal content, and the FOB price of Indonesian MHP cobalt was $49,918/mt Co. MHP payables (against the SMM battery-grade nickel sulphate index) were 85.5-86.5, and the payable indicator for MHP cobalt element (against SMM refined cobalt (Rotterdam warehouse)) was 91. The FOB price of Indonesian high-grade nickel matte was $15,777/mt Ni in metal content.

As of now, the FOB price of Indonesian MHP nickel was $15,549/mt Ni, and the FOB price of Indonesian MHP cobalt was $49,819/mt Co. MHP payables (against the SMM battery-grade nickel sulphate index) were 85-86, and the MHP cobalt element payable indicator (against SMM refined cobalt (Rotterdam warehouse)) was 91. The FOB price of Indonesian high-grade nickel matte was $15,910/mt Ni.

So far, the FOB price of Indonesian MHP nickel is $15,658/mt Ni, and the FOB price of Indonesian MHP cobalt is $49,660/mt Co. The MHP payables (against SMM battery-grade nickel sulphate index) are 88-89, and the payable indicator for MHP cobalt element (against SMM refined cobalt (Rotterdam warehouse)) is 91. The FOB price of Indonesian high-grade nickel matte is $16,021/mt Ni.

[SMM Analysis: Cost and Fundamentals Resonate, High-Grade NPI Prices Rise Rapidly] The average price of SMM 10-12% high-grade NPI rose WoW by 26.1 yuan/mtu to 1,071.5 yuan/mtu (ex-factory, tax included), while the average Indonesia NPI FOB index price increased WoW by $3.31/mtu to $136.32/mtu. After the Chinese New Year, the high-grade NPI market gradually recovered this week. Supported by both fundamentals and costs, high-grade NPI prices continued to climb.