Nickel Sulphate Producers Likely to Cut Production on Huge Loss

SHANGHAI, Apr 10 (SMM) - Nickel sulphate companies and ternary precursor producers are currently selling at a discount in the case of poor demand. The discount on nickel sulphate crystals was about 95%, which suggests that all nickel sulphate companies were selling at a loss. While the ternary precursor companies only accepted a discount of 93%, the nickel sulphate transactions remained poor. The shrinking demand accelerated the price decline. In terms of raw materials, nickel ore mines intended to raise their quotes, and the processing fees remained at 29,000-31,000 yuan/mt in metal content. Some nickel salt plants planned to reduce their production amid the high costs. In such a context, the profit margins of nickel sulphate companies can hardly rise, and the producers are likely to cut their production in April.