[SMM Analysis] Nickel Sulphate Market Stays Quiet During National Day, Faces Price Pressure Amid Weak Demand

Published: Oct 07, 2026 17:46 (GMT+8)

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During the National Day holiday, the nickel sulphate market was relatively quiet, with transactions at a standstill, and prices are expected to remain under pressure after the holiday.

Cost side, nickel prices fell sharply at one point during the National Day holiday, pressured by persistently high oil prices and elevated US Treasury yields, which loosened the cost support for nickel sulphate.

Supply side, nickel sulphate production schedules in October are expected to edge up while remaining broadly stable. Constrained by weak downstream purchasing sentiment, some producers expect to slightly lower operating rates. However, as the price spread between nickel and nickel sulphate has widened again, operating rates at some recycling producers and refined nickel producers that switched production have not pulled back notably. If nickel prices stay weak in October and downstream demand does not recover beyond expectations, the overall supply of nickel sulphate in the market will be ample.

Demand side, domestic orders at top-tier producers fell notably at one point in September, with a slight improvement in October. Coupled with lingering uncertainty over export control policies in early November, export orders are expected to remain high. As a result, precursor production schedules in October are expected to recover somewhat. However, raw materials for early-month production were already stocked in September, so raw material demand is not expected to be directly reflected in purchasing.

Overall, downstream demand in October has improved slightly from September, but the extent is still insufficient to absorb the nickel sulphate supply. The market is expected to remain in surplus, and with weakening cost support, prices are under pressure overall.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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