[SMM Analysis] Raw material market transactions were sluggish, and nickel intermediate product payables were in the doldrums this week.

Raw material market trading was sluggish, and intermediate product payables were in the doldrums this week.

The MHP market remained in a loose supply-demand pattern this week, with nickel and cobalt payables staying weak. On the supply side, after sulphur replenishment in Q3, some producers resumed MHP production to a certain extent, while some traders also released inventory to some degree recently, lifting market availability. On the demand side, downstream nickel salt and cobalt salt prices remained weak. In particular, cobalt sulphate production faced heavy losses, and salt producers showed relatively low acceptance of high-priced MHP, putting pressure on MHP payables. With supply rising and demand weak, MHP payables are likely to stay soft in the short term.

The high-grade nickel matte market was also in a weak supply-demand pattern. High-grade nickel matte currently holds a clear cost advantage over MHP, but on the supply side, mainstream suppliers have completed long-term order signing, leaving limited spot cargo available. On the demand side, actual consumption capacity was insufficient due to downstream production line compatibility constraints. Overall purchasing sentiment was weak, trading activity was low, and payables remained stable.

This week, sulphur prices (CIF Indonesia) fell to $1,000-1,050/mt, with the weekly average price down $25 from $1,050/mt last week. The market showed a pattern of high-level stalemate and gradual decline. The tug-of-war between sellers and buyers in the Indonesian market continued. MHP smelters faced pressure on procurement costs and generally resisted high prices, with transaction centers leaning toward the lower end of the range.

Nickel prices consolidated lower this week, mainly dragged by macro pressure and weak demand expectations. MHP and high-grade nickel matte nickel prices consolidated in tandem with nickel prices. In addition, MHP cobalt prices dropped sharply due to lower cobalt payables. Overall, the intermediate product market is expected to be under pressure in the short term.