Weak fundamentals against cost support should constrain downside room of nickel sulphate prices

For the week ending November 16, nickel sulphate prices stabilised then marginally declined. Nickel sulphate supply was ample. Weak precursor market performance led to low mid-month restocking by precursor enterprises. Year-end cash flow issues along with continued weak demand undermined price support. Transaction prices hovered low. On the raw material front, the Huafei project's gradual production ramp-up eased supply crunch, but didn't resolve the tight supply, keeping discount coefficient steady at 76-78%. With weak fundamentals but cost support, a slight decrease in nickel sulphate prices is anticipated for the week ending November 24.