Nickel Sulphate Prices Continue to Rise on Growing Demand

SHANGHAI, Feb 20 (SMM) - Prices of nickel sulphate extended the growth last week. Battery-grade nickel sulphate prices stood at 39,500-40,500 yuan/mt last Friday, up 600 yuan/mt from the previous Friday. SMM battery-grade nickel sulphate price index was 39,127 yuan/mt last Friday, up 490 yuan/mt from the previous Friday.  Market trading picked up, which was contributed by purchases from some ternary precursor companies. Nickel salt factories were worried about the supply of raw materials amid the growing downstream demand, and they restocked actively. Besides, the raw material output released by some Indonesian projects was lower than expected, which indicated that the supply tightness of MHP can hardly change in the short term. Processing fees of MHP set by nickel sulphate prices less processing fees were once lowered to 29,000 yuan/mt. The sharp increase in raw material costs resulted in the nickel sulphate enterprises’ insistence on high quotes, thus the prices of liquid nickel sulphate rose to 39,000 yuan/mt. Ternary enterprises mainly consumed the in-plant inventory of raw materials and placed fewer small orders last week. The demand from the electrowinning nickel sector was strong since the electrowinning nickel companies gained considerable profits of 20,000-25,000 yuan/mt based on the current nickel sulphate prices. Nickel sulphate prices will edge higher to 40,000-41,000 yuan/mt this week, which is contributed by the high profit margins of electrowinning nickel companies and the purchases from some ternary precursor enterprises.