Prices of Nickel Sulphate Rise Owing to Supply Tightness

SHANGHAI, Feb 6 (SMM) - Quotes of battery-grade nickel sulphate were 38,000-39,000 yuan/mt last Friday, up 1,750 yuan/mt from the previous Friday. SMM battery-grade nickel sulphate price index was 38,093 yuan/mt, up 1,110 yuan/mt from the previous week. The reasons for the rise in nickel sulphate prices are as follows. 1. Demand from refined nickel sector surged, and the transactions kept growing. Attracted by the huge profits brought by the price difference between nickel and nickel sulphate, some manufacturers also began to produce refined nickel with nickel sulphate and speed up the construction of new production lines. 2. Nickel salt manufacturers carried low spot inventories after the CNY holiday. In January, some nickel sulphate manufacturers greatly reduced their production amid poor downstream demand, and some even suspended the operation for maintenance. The inventory of nickel sulphate, especially crystal, stood low. 3. The leading integrated factories were worried about the future supply of raw materials with growing nickel sulphate orders, and they became more willing to restock. In such a context, the nickel sulphate market was in a supply deficit. Prices of battery-grade nickel sulphate are expected to move between 39,500-40,500 yuan/mt this week.