Battery-Grade Nickel Sulphate Prices Slumped in March

SHANGHAI, Apr 19 (SMM) – At the beginning of March, pure nickel prices plummeted amid macro headwinds, causing the price difference between pure nickel and nickel sulphate to shrink rapidly. The discounts of nickel sulphate against pure nickel even reversed into premiums of 759 yuan/mt at one point. Emerging nickel sulphate demand from electrodeposition nickel producers was short-lived. Some electrodeposition nickel producers were seeking alternatives to nickel sulphate in March.  At the same time, the domestic orders for ternary cathode precursors dropped almost 50%, sending demand shock to upstream nickel sulphate. Some downstream customers even cancelled their long-term orders for nickel sulphate, causing nickel sulphate prices to fall precipitously. As bearishness towards raw material prices prevailed, players in the industry chain focused on destocking. The domestic nickel sulphate production increased by 18.3% MoM in March, exacerbating oversupply and leaving producers under mounting pressure to sell.