[SMM Nickel Intermediate Product Daily Review] May 13: MHP and High-Grade Nickel Matte Nickel Prices Declined

As of now, the FOB price of Indonesian MHP nickel is $17,422/mt Ni, and the FOB price of Indonesian MHP cobalt is $51,291/mt Co. The MHP payables (against the SMM battery-grade nickel sulphate index) stand at 90.5-91.5, and the MHP cobalt element payable indicator (against SMM refined cobalt (Rotterdam warehouse)) is 94. The FOB price of Indonesian high-grade nickel matte is $17,725/mt Ni.

For the MHP market, supply side, spot circulation was limited, with some sellers suspending quotations. In addition, recent adjustments to Indonesia's HPM may push up hydrometallurgical costs, coupled with expected reductions in MHP supply caused by sulphur, leading some producers to raise their nickel payables quotations. Demand side, China's NCM market demand recovered this month, with nickel sulphate procurement demand rebounding, and just-in-time procurement drove up MHP transaction payables. Looking ahead, with upstream cost support coexisting with downstream demand recovery, MHP nickel and cobalt payables are expected to remain relatively strong overall, while the upside room will be influenced by nickel sulphate prices.

For the high-grade nickel matte market, supply side, available volumes in the market were tight, and seller quotations remained firm. Demand side, enterprises externally purchasing raw materials currently find using high-grade nickel matte more economical than using MHP. Under tight supply and demand, nickel payables are currently supported at high levels. Looking ahead, amid expectations of tightening MHP supply, high-grade nickel matte's complementary role as an alternative raw material stands out, making it difficult for nickel payables to decline.

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