SMM

On December 27, the SMM 8-12% high-grade NPI average price was 940 yuan/mtu (ex-factory, tax included), unchanged from the previous working day. Supply side, domestically, high-grade NPI prices fluctuated downward. The strong US dollar led to increased mining costs for smelters, and with traditional domestic smelters facing expanded losses, production motivation weakened, keeping production at low levels. In Indonesia, new RKAB quotas began to be released, and Indonesian smelters had relatively sufficient raw material stocking. Coupled with the release of new capacity and the conversion of high-grade nickel matte to NPI, Indonesian production continued to grow. Demand side, stainless steel social inventory and in-plant inventory destocking progressed slowly. Leading stainless steel mills showed weak purchase willingness for high-grade NPI, and some mills had already secured long-term contracts. In the short term, market sentiment remained subdued, and high-grade NPI prices may continue to pull back. However, downside room is limited due to cost support.