China nickel sulphate production fell 6.9% in April

SHANGHAI, May 9 (SMM) – China’s production of nickel sulphate dropped in April, as higher raw material costs bolstered by a nickel price rally and weak demand forced some producers to suspend production to clear inventories.

The SMM survey showed that 44,500 mt of nickel sulphate, including 39,100 mt of battery-grade materials and 5,500 mt of electroplating-grade materials, was produced in China last month, down 6.88% from a month earlier and 20.54% from a year earlier.

The shut-ins wiped out 5,000-6,000 mt of nickel sulphate output last month, and April’s output translated to 9,900 mt in Ni content.

As car manufacturers in Europe and the US were shuttered after those countries began coronavirus lockdowns in mid-March, Chinese precursor producers began to feel the pain in May and received fewer orders, which reduces demand for nickel sulphate.

China’s output of nickel sulphate, however, will rebound 4.97% from April to 10,300 mt Ni in May, as producers that suspended production in April plan to reopen later in the month.