Tsingshan’s stainless steel mill in south China’s Fujian province has just made another large purchase of high-grade nickel pig iron (NPI), bringing its cumulative procurement for this month to 100,000 mt which is estimated to secure its production until at least July. 

The latest purchase stood at about 10,000 mt with the price at 1,005 yuan/mtu, ex-works. 

The mill consumes around 250,000 mt of high-grade NPI per month, and its procurement volume varies from month to month as it has captive NPI plants both in China and overseas. 

The market was surprised by the aggressive buying by the mill, as NPI shipments from its plant Indonesia were not disrupted by the coronavirus restrictions.  

SMM assessed ex-works, tax-included prices of NPI with 8-12% Ni content at 941 yuan/mtu as of May 14, up nearly 8% from a three-year trough of 872.5 yuan/mtu seen in late March and early April.