- Domestic, Indonesian NPI prices remain flat w-o-w
- Mills cut production amid off-season demand weakness
SteelDaily: China’s stainless steel raw material prices remained largely stable w-o-w on 22 December, continuing to move within a narrow range since the middle of the month due to a lack of clear direction. While policy uncertainties and cost-side pressures provided support to key raw materials, downstream demand weakened sharply due to seasonal factors and a broader economic slowdown, keeping market participants in a cautious wait-and-watch mode.
Nickel pig iron prices hold steady
Nickel pig iron (NPI) prices remained largely stable in the domestic market, as recorded on 22 December, showing limited w-o-w movement. According to Mysteel, high-NPI shipping prices were assessed at RMB 885-890/nickel unit on 19 December, while domestic arrival prices stood at RMB 890-895/nickel unit, largely unchanged from the previous week. Indonesian high-NPI prices also remained flat, with shipping prices ranging between RMB 885-900/nickel unit (tax inclusive) and FOB prices assessed at around $109/t.
Although some NPI offers were raised to around RMB 920/nickel unit (including shipping and tax), these higher levels failed to translate into confirmed transactions, reflecting weak spot market demand.
Cost pressures persist amid Indonesian policy uncertainty
Cost-side uncertainty continues to lend support to NPI prices. Market participants remain focused on potential changes to Indonesia’s domestic nickel ore pricing mechanism expected in early 2026. Additionally, delays in the announcement of Indonesia’s nickel ore RKAB (referring to mining work plan) allocations have kept ore prices elevated, sustaining cost pressure across the production chain.
As a result, margins for NPI producers remain under strain. Some Indonesian producers are reportedly operating below cash break-even levels, while production disruptions have been observed at select plants, highlighting ongoing profitability challenges.
Ferro chrome market shows stability
The ferro chrome market remained relatively stable, with high-carbon ferro chrome prices in northern China holding within a narrow range. Ex-factory prices were at approximately RMB 8,000-8,150/t 50-base t on 22 December. While supply conditions have not changed materially, demand has softened in line with reduced stainless steel production.
However, relatively firm chrome ore prices have provided cost support, limiting the likelihood of a sharp near-term price correction.
Demand weakens amid seasonal slowdown
Downstream stainless steel demand has contracted notably with the onset of the off-season. Mills have scaled back production and raw material procurement, further dampening buying interest across the raw material market. Limited demand visibility has reinforced cautious purchasing behaviour among traders and producers alike.
Outlook
China’s stainless steel raw material prices are expected to remain close to the current levels in December. While cost pressures and policy-related uncertainties may continue to provide price support, weak demand conditions are likely to cap any upside, keeping the market stagnant.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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