SMM

On September 19, the average price of SMM 8-12% high-grade NPI was 979 yuan/mtu (ex-factory, tax included), down 1 yuan/mtu from the previous working day. Supply side, domestically, as NPI prices fluctuated downward, smelters' losses expanded, and production remained stable as production drivers declined. In Indonesia, new smelters gradually ramped up production after coming online, and some high-grade nickel matte production was converted back to NPI, leading to an overall increase in production. Demand side, the stainless steel performed lower than expected in the peak season, and post-holiday market sentiment for NPI was cautious, with potential downward expectations for NPI demand. In the short term, NPI prices are expected to fluctuate downward.