China’s Nickel Sulphate Output Dropped In January amid Substantial Output Cuts

SHANGHAI, Feb 9 (SMM) - China produced 31,200 mt of nickel sulphate with Ni content in January 2023. The output stood at 141,800 mt in physical content, down 16.99% month-on-month but up 19.5% year-on-year.

The output cuts of nickel sulphate across China were even more substantial in January than in December, which almost returned to the level of July last year. Significant output cuts at precursor plants in January led to high nickel sulphate inventories, dampening the demand for nickel sulphate. This hampered shipments from nickel sulphate producers.

Meanwhile, the raging Covid infections across China on top of China changing its pandemic control policy has taken a toll on all enterprises in the industrial chain. For some enterprises, even more than half of their labour force was infected with Covid-19. The production of nickel sulphate was affected significantly, especially for small enterprises.

The lack of personnel has become a major issue. In this scenario, some plants shuttered in advance for CNY holidays in January and undertook maintenance. The operating rates then declined, thereby causing the overall production to fall in January.

In February, the demand for nickel sulphate proliferated as the large price spread between the first and nickel prices galvanised some plants to purchase nickel sulphate used in refined nickel production. The demand from ternary plants also picked up gradually. Output of nickel sulphate in February is expected to grow 19.7% from January to 37,300 mt in Ni content.