[SMM Analysis] Influenced by macro sentiment, MHP and high-grade nickel matte prices declined this week.

This week, in the MHP market, demand side, although it is the traditional off-season for new energy, affected by the cancellation of export tax rebates for some new energy products in April, some nickel salt and integrated precursor plants rushed to export, and market inquiries were active. Supply side, spot supply of MHP was limited, and some sellers had stopped offering. Under the tight supply-demand situation, MHP nickel payables and cobalt payables remained flat at high levels WoW.

Producers using high-grade nickel matte as raw material had sufficient stockpiling, with low urgency for raw material demand, and purchasing was relatively cautious. Overall, the raw material market remained tight, supporting high-grade nickel matte prices, and high-grade nickel matte nickel payables were flat WoW.

As a key auxiliary material for nickel intermediate product production, sulfur prices were in a stalemate this week, with prices unchanged. Supply side was tight, turmoil in Iran complicated spot transactions, and loading delays in Qatar and Saudi Arabia continued to restrict timely supply. Demand side was cautious, with Chinese buyers adopting a "purchase as needed" strategy, while India and Brazil purchased less due to maintenance and inventory management. Under the tight supply-demand situation, it was difficult for sulfur prices to decline.

Regarding nickel prices, this week nickel prices experienced a sharp sell-off triggered by the resonance of a sharp reversal in macro sentiment and high inventory pressure from the fundamentals. LME nickel prices overall decreased WoW compared to last week. Overall, affected by the decline in nickel prices, Indonesia MHP nickel FOB prices and Indonesia high-grade nickel matte FOB prices moved lower, while the SMM Indonesia MHP cobalt FOB price saw minor fluctuations.