MYSTEEL: Indonesia's NPI output cut is too small to lift China stainless steel

Nickel smelters located in the Indonesia Morowali Industrial Park (IMIP) on Indonesia's Sulawesi island, will cut output of nickel pig iron (NPI) - the raw material favoured by Chinese stainless steel producers - for about two weeks as an El Nio-driven drought reduces the supply of water needed to cool and protect equipment, industry sources said. However, Chinese imports and stocks of the ferroalloy will more than cover the shortfall.

For the stainless steel sector, supply of the raw material remains ample, keeping NPI prices under pressure and offering no cost support for stainless prices, with weak end-user demand being the real drag on prices, Mysteel Global notes. The cut: real, but small The park, majority owned by Chinese stainless giant