[SMM Analysis] Nickel Sulphate Prices Edge Down as Chinese New Year Approaches Amid Weak Market Sentiment

Published: Feb 5, 2026 13:16

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As of Thursday this week, the SMM battery-grade nickel sulphate index stood at 31,939 yuan/mt, with the quotation range for battery-grade nickel sulphate between 31,700-32,800 yuan/mt. The average price edged down WoW.

Demand side, logistics constraints ahead of the Chinese New Year and some producers having already stocked up on raw materials for the holiday led to relatively low acceptance of high nickel sulphate prices. Supply side, while concerns about rising raw material costs persisted among producers, some maintained a strong willingness to hold prices firm; however, others suspended quotations due to impending production halts for the holiday, resulting in an overall weak willingness to sell in the market. Looking ahead, the nickel sulphate market is expected to remain mediocre before the holiday, with close attention needed on subsequent nickel price trends.

Inventory side, the upstream nickel salt smelter inventory index rose from 4.6 days to 4.7 days this week, while the downstream precursor plant inventory index increased from 8.8 days to 9.1 days. Downstream producers restocked somewhat at the end of last month, and the integrated enterprise inventory index held steady at 7.3 days. In terms of trading strength, the upstream nickel salt smelter willingness to sell sentiment factor dropped from 1.9 to 1.8 this week, and the downstream precursor plant purchasing sentiment factor declined from 2.7 to 2.5. Overall market trading sentiment remained weak ahead of the holiday, with the integrated enterprise sentiment factor falling from 2.5 to 2.3. (Historical data available in the database.)

nickel sulphate Chinese New Year logistics constraints raw material costs inventory levels

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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