Cobalt salt prices faced heavy loss pressure. This week, nickel intermediate product payables were in the doldrums.
This week, the MHP market supply-demand pattern remained relatively loose, and nickel and cobalt payables remained weak. Supply side, after the strait reopened, some producers' MHP production recovered to some extent, while some traders also released inventories to a certain degree recently, boosting market availability. Demand side, downstream nickel salt and cobalt salt prices remained weak. In particular, the production of cobalt sulphate faced significant loss pressure, and salt producers showed relatively low acceptance of high-priced MHP, putting pressure on MHP payables. Under the pattern of rising supply and weak demand, MHP payables may pull back in the short term.
The high-grade nickel matte market was also in a supply-demand weak pattern. Currently, high-grade nickel matte had an obvious economic advantage over MHP, but supply-side, mainstream suppliers had already completed long-term order signing, leaving limited available spot cargoes; demand-side, constrained by downstream production line compatibility, actual consumption capacity was insufficient. Overall purchasing sentiment was weak, trading activity was low, and payables remained stable.
The international sulphur market saw repeated tug-of-war over the geopolitical premium. This week, sulphur prices (CIF Indonesia) fell $50/mt WoW. Although three sulphur cargo ships recently transited the Strait of Hormuz successfully, US-Iran negotiations remained deeply divided and Houthi attacks in the Red Sea continued, so transit has yet to normalise, and the flow of Middle Eastern supplies remained constrained. In addition, Kazakhstan's indefinite ban on exports to non-Russian destinations, the extension of Russia's ban to the end of 2026, and Turkey's ban through the end of Q3 meant short-term supply disruptions persisted. Sulphur prices stayed high, with possibly some downside room.
Nickel prices: This week, nickel prices continued their consolidation pattern. With quotas still uncertain, it was difficult to establish a clear trend. Meanwhile, MHP payables held steady, with MHP nickel prices stable and slightly higher, while high-grade nickel matte payables were stable, and their prices consolidated along with nickel prices. Additionally, MHP cobalt prices edged higher on the back of a cobalt price rebound. Overall, the intermediate product market was expected to be under pressure in the short term.
