The cost efficiency of high-grade NPI expanded last week
Currently, the cost of producing stainless steel from stainless steel scrap is around 14,485.89 yuan/mt, while producing it from high-grade NPI costs about 13,753.73 yuan/mt. Due to slow Indonesian RKAB approval, there were concerns about nickel ore supply. As a result, the high-grade NPI prices were strong, with the SMM high-grade NPI index increasing by about 20.8 yuan/mt WoW. The cost of producing stainless steel from highgrade NPI rose by approximately 166 yuan/mt WoW. For the stainless steel scrap, its price also climbed along with rising stainless steel price. For instance, on February 27, a steel mill in South China quoted a price of 9,800 yuan/mt for Ni8% 304 stainless steel scrap, marking a 100 yuan/mt increase compared to February 19. In terms of demand, stainless steel production is expected to significantly increase in March. Since stocking has not been completed, it's expected that raw material prices will stay robust in March. The price difference between stainless steel scrap and high-grade NPI widened by 118 yuan/mt as price rise of the former outpaced the latter.
Please do not hesitate to contact Jean at jeantang@smm.cn or 86-19946295759 if you have any question or inquiry.
