As of now, the FOB price of Indonesian MHP nickel was $15,127/mt Ni, and the FOB price of Indonesian MHP cobalt was $50,716/mt Co. The MHP payables (against the SMM battery-grade nickel sulphate index) stood at 80.5-81.5, with the MHP cobalt element payable indicator (against SMM refined cobalt, Rotterdam warehouse) at 95. The FOB price of Indonesian high-grade nickel matte was $15,254/mt Ni.
In the MHP market, supply side, the spot circulation was tight, with some sellers suspending quotations. Additionally, the supply reduction of MHP caused by sulfur had not yet shown a significant recovery, and payables for nickel quoted by some producers remained at high levels. Demand side, the month marks the mid-year period, and nickel sulphate prices were relatively weak. Nickel salt smelters' low price acceptance suppressed the upside room for MHP payables. Looking ahead, with upstream cost support and the downstream demand pattern unchanged, MHP nickel and cobalt payables are expected to be under pressure due to weak sulphate prices.
In the high-grade nickel matte market, supply side, the available volume in the market was tight, with sellers maintaining firm quotations. Demand side, for enterprises purchasing raw materials externally, using high-grade nickel matte was more economical than using MHP. Amid tight supply-demand conditions, nickel payables currently found support at high levels.
Looking ahead, under expectations of tightening MHP supply, the supplementary role of high-grade nickel matte as an alternative raw material is highlighted, making nickel payables hard to decline.
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![[SMM Analysis] Mid-year period impacted downstream willingness, nickel sulphate prices dragged down precursor prices](https://imgqn.smm.cn/usercenter/vcoVV20251217171732.jpeg)
