SHANGHAI, Oct 9 (SMM) – In September 2023, China’s output of nickel sulphate was 37,000 mt in metal content, or 168,000 mt in physical content, down 12.89% MoM and 11.02% YoY. The main reason for the sharp decline in nickel sulphate production is that poor demand prevented nickel sulphate prices from rising while MHP prices rose due to short supply, which caused nickel salt manufacturers to suffer losses. Although the order volume of downstream precursor plants improved in September compared with August, they found high-priced nickel sulphate hard to accept as their profit situation was poor. Due to the drop in nickel prices, the price difference between nickel sulphate and refined nickel shrank. As a result, refined nickel smelters slowed down purchasing nickel sulphate.
In October, raw material shortages are expected to persist, which could sustain gains in raw material prices. Demand has not improved significantly. In this context, nickel sulphate output is expected to continue to decline, falling 3% from September.
