China NPI prices stable as subdued demand masks underlying supply tightness
Published by: Laura Li , Irene Chuang
28 Jul 2026 @ 16:14 UTC
Article Link: https://dashboard.fastmarkets.com/launch?url=/a/bd259840-0339-4782-b4e2-3fffd97e40d2
Nickel pig iron (NPI) prices in China were stable in the week ended Friday July 24, with trading activity subdued by a persistent bid-offer gap. Lower June import volumes reinforced market concerns over tightening supply, helping underpin the NPI market despite weak demand, sources told Fastmarkets.
Fastmarkets' weekly price assessment fornickel pig iron, high-grade NPI, 10-14% Ni content, spot, cifChina was 1,130-1,150 yuan ($166-170) per nickel unit on Friday July 24, flat on a weekly basis.
Fastmarkets' weekly price assessment for nickel pig iron, high-grade NPI content 10-15% spot, ddp China was 1,140-1,150 yuan per nickel unit on Friday, unchanged week on week.
And Fastmarkets' daily assessment for nickel pig iron, 10-14% Ni content, fob Indonesia was $145-147 per nickel unit on Tuesday July 28, also stable day on day.
On a CIF China basis, a small-volume deal was reported at 1,150 yuan per nickel unit, while offers were quoted in the range of 1,145-1,165 yuan per nickel unit.
On a DDP China basis, one small-volume deal was reported at 1,165 yuan per nickel unit, while bids were reported in the range of 1,130-1,140 yuan per nickel unit.
The increase in nickel futures in the week to Friday improved market sentiment, although demand for NPI remained weak, sources said.
The most-traded nickel contract on the Shanghai Futures Exchange (SHFE) rose by 3,790 yuan per tonne during the weekly pricing period, closing at 133,710 yuan per tonne on Friday, up from 129,920 yuan per tonne on Monday July 20.
"The stainless-steel market continues in its traditional summer lull," an NPI trader based in Shanghai said. "Many large stainless-steel mills are undergoing planned maintenance or temporary production cuts, while weak end-user demand continues to limit their appetite for NPI purchases."
Meanwhile, China's latest NPI import data pointed to tight NPI availability, sources said.
According to data from China's General Administration of Customs, China imported 755,875 tonnes of NPI and ferronickel in June, down by 153,895 tonnes, or 16.9%, from 909,770 tonnes in May, reinforcing cautious sentiment among buyers.
"NPI production was running at relatively low levels previously, which partly explains June's lower import volume," a second NPI trader based in Shanghai said.
"Earlier in the second quarter, some NPI production lines were diverted to nickel matte, reducing the material available to the stainless-steel sector," an NPI trader based in Eastern China said, noting that this had further tightened NPI availability.
While seasonal weakness in stainless-steel demand and limited raw material restocking activity have so far prevented supply constraints from having a more pronounced impact on NPI prices, some market participants expressed concern that lower imports and ongoing inventory drawdowns could leave the market more exposed to supply tightness once demand recovers after the summer lull, sources told Fastmarkets.
"NPI supply is tight, but stainless-steel demand is equally soft at the moment, so the NPI market is still broadly balanced," the first NPI trader based in Shanghai said.
"The real challenge will come once the seasonal slowdown at stainless-steel mills ends. If NPI imports remain at current levels in September and October, spot NPI supply could tighten further."
Moreover, market participants were also closely monitoring Indonesian customs' intensified inspections of export cargoes for rare-earth-element content, Fastmarkets learned.
Industry sources said some NPI cargoes had experienced shipping delays because of the stricter export checks, adding to market caution and deepening concerns over near-term supply availability.
Upstream, feedstock nickel ore prices remained stable. While ample Philippine-origin supply continued to cap price gains, higher freight costs from the Philippines to China helped support the nickel ore market, sources said.
"Shipping costs from the Philippines to China have increased recently, supported by higher fuel costs amid the Iran-US conflict and disruptions caused by typhoons," an NPI and ore trader based in Shanghai said.
Market participants also noted limited buying interest in ore containing less than 1.3% nickel, with both Indonesian and Chinese NPI producers continuing to favor higher-grade material, Fastmarkets understood.
Fastmarkets' weekly price assessment for laterite ore with 1.3% Ni content, cif China, was $46-48 per tonne on Friday July24, unchanged week on week.
Fastmarkets' weekly price assessment for laterite ore with 1.5% Ni content, cif China, was $63-65 per tonne on Friday, flat on a weekly basis.
And Fastmarkets' weekly price assessment for nickel ore with 1.8% nickel content, cif China, was $91-94 per tonne on Friday, also unchanged from the previous week.