According to the news on December 11, the price of China's Nickel Pig Iron (NPI) continued to fall this week after a pause in the week before December 8 (Friday), and the market still faces oversupply and a slowdown in demand from the stainless steel industry.
From December 2022 to December 2023, with the market facing oversupply and a slowdown in demand from the steel industry, the price of Nickel Pig Iron (NPI) continues to fall.
According to market participants, the demand in the stainless steel industry remains relatively weak, and Indonesia, the main producer of Nickel Pig Iron (NPI), has not reduced production, with smelters maintaining high output. Despite the significant drop in NPI prices, Indonesian smelters have managed to maintain a very high output, due to the continuous decline in the price of nickel ore in Indonesia.
After the Indonesian government stated that it would not issue any nickel mining quotas in 2023, due to fears of supply shortages, the price of Indonesian nickel ore has been rising, which has also pushed up the price of Nickel Pig Iron. Sources said that when the price of Nickel Pig Iron fell again in mid-September, the country's iron ore prices fell accordingly, with the price of Indonesian nickel ore falling by $15 per ton from its peak.
Meanwhile, due to the weak demand from Nickel Pig Iron manufacturers, the price of nickel ore in China’s import market is steadily declining. The quotation for 1.5% nickel ore is $45 per ton, showing a downward trend.
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