Nickel sulphate prices will fall slightly this week

SHANGHAI, Jul 25 (SMM) – Quotes of battery-grade nickel sulphate were 33,500-33,900 yuan/mt last Friday, down 200 yuan/mt from the previous Friday. The SMM battery-grade nickel sulphate index reached 33,627 yuan/mt last Friday, marking a 212 yuan/mt decrease compared to the previous Friday. Last week, nickel sulphate prices went down, and short-term transactions decreased. On the supply side, enterprises have limited inventory, and due to the ongoing high raw material costs, they are not willing to sell at lower prices. On the demand side, the profit margin for producing refined nickel from nickel sulphate remains limited. As a result, the demand for nickel sulphate from the refined nickel industry has not shown significant improvement. Based on SMM research, the ternary precursors enterprises, who use nickel sulphate in their production process, haven't seen a significant improvement in their order volume for July and August. Additionally, compared to the production surge in June, the ternary precursor output for July and August might be slightly lower. This has resulted in downstream enterprises having relatively low willingness to accept high-priced nickel sulphate, with only essential purchases being maintained. In the near future, nickel sulphate prices are expected to decrease. This has made downstream enterprises very cautious, leading to a lack of interest in making immediate purchases. Last week, both supply and demand sides are at a standstill, leading to stagnation in the nickel sulphate market. Right now, enterprises have low inventory levels. Over the next two weeks, downstream enterprises will start stocking up for the end of the month, which could cause more inquiries and purchases. This rising demand will keep the nickel sulphate price from dropping much. The expectation is that the nickel sulphate prices will stay relatively steady and weak this week, within the range of 33,200 to 33,800 yuan/mt.

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