[SMM Analysis] Mid-Month Market Trading Sluggish; Nickel Salt Prices Fall This Week

According to the National Bureau of Statistics, national sulfuric acid (100% basis) output in June 2026 reached approximately 7.923 million tons (vs. 8.365 million in May, 8.948 million in April, and 9.637 million in March, showing a month‑on‑month decline). The year‑on‑year change for the month was about ‑10%. For the first half of the year (January–June), cumulative production totaled roughly 52.223 million tons, a year‑on‑year decrease of about ‑0.1% (down from +1.9% in the January–May period, mainly due to the sharp 10% drop in June). Production remains heavily concentrated in smelting and phosphate‑fertilizer provinces such as Yunnan, Inner Mongolia, Guangxi, Anhui, Henan, and Shandong—with Yunnan ranking first at about 1.24 million tons per month. Smelter acid (by‑product from copper/zinc processing) forms the supply backbone, while acid for phosphate fertilizer drives the bulk of demand.

According to SMM, a leading Indian stainless steel producer raised domestic hot and cold rolled stainless steel coil prices effective August 10, its first revision this month. Price increases by grade: 304-series increases INR 2,000/t, 316L-series increases INR 3,000/t, 200-series HRC increases INR 1,500/t, 200-series CRC and 400-series increases INR 1,000/t each. The hike was primarily driven by rising ferro molybdenum costs, with FeMo 60% prices up 2% week-on-week, alongside volatile nickel prices amid ongoing uncertainty over Indonesia's revised nickel mining quotas. Healthy domestic demand prompted the producer to revoke discounts on some products, while tight availability of certain grades provided additional pricing support. Imports remained subdued as domestic material is currently more competitively priced, sustaining local procurement preference. Near-term price direction will hinge on nickel price movements and the outcome of Indonesia's nickel mining quota review.