Nickel Sulphate Profits may Continue to Fall this Week on Falling Raw Material Prices

SHANGHAI, Mar 27 (SMM) - Last week, the profit margin of battery-grade nickel sulphate companies fell further. The profit margin of nickel sulphate produced with high-grade nickel matte and MHP shrank to less than 5%, and that produced with nickel briquette still stood below the break-even point. Nickel sulphate prices were also on the downward track. Sales prices of MHP and high-grade nickel matte that were set based on nickel sulphate prices dropped accordingly. Profit margins gained by nickel sulphate companies varied according to different pricing methods in the market. Profit margins of nickel sulphate produced with scrap were relatively higher. However, the scrap producers were less willing to purchase raw materials amid the falling lithium carbonate prices. The price decline in raw materials was faster than that in nickel sulphate owing to the tighter supply of the former. Nickel sulphate profits may drop further.