[SMM Nickel Sulphate Daily Review] April 17: Downstream Purchasing Sentiment Rebounded, Nickel Salt Prices Rose Significantly

On April 17, the SMM battery-grade nickel sulphate average price rose significantly.

Cost side, Indonesia's revision of HPM combined with continued fermentation of tight intermediate product expectations drove nickel prices further up, leading to a sharp rise in the immediate production cost of nickel sulphate. Supply side, nickel prices, MHP payables, and prices of auxiliary materials such as sulphuric acid have all remained elevated recently, prompting nickel salt smelters to raise their quotes due to rising costs. Demand side, with the Labour Day holiday approaching, some downstream enterprises recently had stocking demand, slightly increasing their acceptance of nickel salt prices. Today, the upstream nickel salt smelter Willingness to Sell Sentiment Factor was 1.9, the downstream precursor plant procurement sentiment factor was 2.7, and the integrated enterprise sentiment factor was 2.3 (historical data can be accessed by logging into the database).

Looking ahead, as the month-end procurement period approaches, attention should be paid to downstream demand conditions and the strength of cost pass-through to downstream.

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