- Indonesia, China NPI output exceeds stainless steel demand
- Chinese NPI imports decline by nearly 20% m-o-m in Jul’25
SteelDaily: The Asian nickel pig iron (NPI) market continues to grapple with oversupply, as increased production in Indonesia and China outweighs demand from stainless steel producers. Despite expectations of stable NPI prices in the near term, smelters remain under pressure with limited margins. Market participants highlight weak buying interest, driven by cautious sentiment amid global economic uncertainties.
In July, NPI imports into China saw a sharp decline of nearly 20% m-o-m. The reduction reflects both seasonal slowdowns and stricter policies on ore supply. Meanwhile, nickel ore shipments from the Philippines decreased, tightening feedstock availability. However, oversupply conditions persist, preventing any meaningful recovery in prices despite constrained imports.
Indonesia’s nickel sector also remains under strain, as government-set production quotas continue to exceed actual demand. While high-grade NPI prices held steady, pyrometallurgy-based nickel ore prices declined, squeezing smelters further. With policymakers considering possible interventions, anticipation suggests that only significant supply adjustments could balance the market. Until then, oversupply is likely to weigh on global stainless steel prices.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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