Posted on 18 Apr 2024
Chinese prices of nickel pig iron (NPI) recovered during the past week, thanks to improved sentiment in the domestic market, with the price of 8-10% grade NPI in East China's Jiangsu province under Mysteel's assessment reaching Yuan 940/mtu ($130/mtu) including delivery and the 13% VAT as of April 16, rising by Yuan 10/mtu from one week before.
Domestic NPI smelters tried to lift their offering prices as stainless-steel producers were issuing more enquiries, which perked up the physical market. Some stainless mills had to accept higher NPI procurement prices to fulfil their immediate needs for the ferroalloy, Mysteel Global learned.
The latest procurement price tabled by a stainless steelmaker in Southwest China's Guangxi was reported at Yuan 965/mtu for delivery in June, as against the concluded prices of Yuan 930-940/mtu in late March, a market source in Shanghai said.
Domestic stainless prices have strengthened this week, which gave NPI smelters and traders some confidence to raise their offering prices, he said.
For example, the spot price of 304/2B Hongwang 2*1240mm stainless cold-rolled coil in Wuxi was assessed by Mysteel at Yuan 13,900/t in-warehouse and including the 13% VAT as of April 16, higher by Yuan 200/t on week.
The production costs of the NPI smelters remain high as domestic prices of nickel concentrates are staying firm. As of April 16, the price of Philippines-origin 1.3% nickel content concs was assessed by Mysteel at $30/t CIF Lianyungang port in Jiangsu, the same level as the previous week.
Inventories of nickel concs at China's major ports have risen slightly with the increase in volume delivered to the ports. Mysteel's latest weekly survey showed that as of April 11, total tonnage at the 14 ports under its regular tracking reached 10.1 million tonnes, up by 15,600 tonnes or 0.2% on week. Among the total, the volume imported from the Philippines increased by 100,600 tonnes or 1.1% during the same period to 9.55 million tonnes.
Source:Mysteel Global
