Ferro-nickel discount narrows after Chinese NPI price reaches all-time high

The discount paid for ferro-nickel in China narrowed significantly in October from a month earlier amid tight supply and the higher price of its alternative, nickel pig iron (NPI), while spot markets for both materials were active due to stockpiling by stainless steel mills.

Fastmarkets assessed the ferro-nickel premium/discount, 26-32% Ni contained, cif China at a discount of $300 per tonne to a premium of $100 per tonne on Monday October 25, narrowing from a discount of $400-600 per tonne on September 27.

The ferro-nickel premium/discount is based on the London Metal Exchange nickel price, and had been at a discount since August 2018 after ferro-nickel began to lose its appeal as a raw material input for stainless steel due to an abundance of and lower prices for NPI in China.


Yingchi Yang

October 26, 2021

04:18 GMT