[SMM Nickel Intermediate Product Daily Review] On June 8, MHP and high-grade nickel matte prices declined.

As of now, the FOB price of Indonesian MHP nickel was $17,341/mt Ni, and the FOB price of Indonesian MHP cobalt was $51,393/mt Co. MHP payables (against the SMM battery-grade nickel sulphate index) were 89-90, and the MHP cobalt payable indicator (against SMM refined cobalt (Rotterdam warehouse)) was 95. The FOB price of Indonesian high-grade nickel matte was $17,430/mt Ni.

In the MHP market, supply side, spot cargo availability was low, and some sellers suspended quotations. Additionally, due to Indonesia's recent adjustment of HPM which may have driven up hydrometallurgical costs, coupled with expectations of reduced MHP supply caused by sulphur, some producers raised their nickel payable offers. Demand side, domestic demand from the ternary battery sector remained strong in the current month, nickel sulphate procurement demand rebounded somewhat, and just-in-time procurement pushed up the transaction payables for MHP. Looking ahead, with upstream cost support and downstream demand recovery coexisting, MHP nickel and cobalt payables are expected to operate on a strong note overall, and the upside room will be influenced by nickel sulphate prices.

In the high-grade nickel matte market, supply side, the volume of available material was tight, and sellers’ offers were firm. Demand side, for enterprises purchasing raw materials externally, the economics of using high-grade nickel matte were stronger than that of using MHP. Under tight supply-demand conditions, the nickel payable indicator was supported at a high level. Looking ahead, with expectations of tightening MHP supply, the supplementary role of high-grade nickel matte as an alternative raw material will become prominent, making it difficult for the nickel payable indicator to decline.

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