Nickel sulphate prices may stabilize on cost support

The SMM battery-grade nickel sulphate index reached 26,342 yuan/mt on December 14, marking a 1,072 yuan/mt decrease compared to December 7. Quotes of battery-grade nickel sulphate were 26,300-26,800 yuan/mt, down 1,200 yuan/mt from December 7. Nickel sulphate prices continued to decline. From a fundamental perspective, nickel salt enterprises are maintaining production according to long-term orders. Some nickel salt factories sold inventory at a low price due to the demand for capital recollection at the year-end, leading to low transaction prices in the market. While the low prices have sparked increased inquiry, overall, the transactions remain weak. In December, a drop in ternary precursor production led to reduced demand for nickel sulphate, prompting some essential restocking. The continuous decline in nickel sulphate prices deepened its discount compared to refined nickel. While procuring nickel sulphate externally for refined nickel production is no longer causing losses, profits remain bleak. Refined nickel producers have started to receive inquiries, but there are no active transactions at the moment. The overall fundamentals continue to show a weak performance.

Looking ahead, it is expected that as the low-priced inventory is gradually consumed and there is some cost support for nickel sulphate prices, the prices will stabilize this week, likely moving between 26,000 to 26,500 yuan/mt.