SMM Analysis Of Nickle Sulphate In July And Forecast For August

In July 2024, the national production of nickel sulphate was 27,800 mt in metal content and 126,200 mt in physical volume, down 9% MoM and 29.7% YoY. Supply side, due to the inverted prices of raw materials such as scrap and intermediates, many nickel salt plants remained in a loss-making state from early to mid-July. Additionally, some salt plants offered excessive discounts in June to promote products, leading to a more rigid pricing strategy in July and proactive production cuts to address the loss issue.

Demand side, although there was some growth in July, the destocking and inventory adjustment actions of cathode material companies slowed down the procurement pace of nickel salts by precursor companies, prompting salt plants to reduce production loads and resulting in a decline in output.

Looking ahead to August, the demand from ternary cathode precursor companies is expected to grow to some extent. However, most companies prefer to sign quarterly long-term contracts with salt plants, and some companies have already purchased low-priced nickel salts in July, showing low acceptance of high-priced nickel salts. Therefore, the production of nickel sulphate in August is expected to see a slight increase, but the growth will be limited. It is currently estimated that in August 2024, the national production of nickel sulphate will be 28,400 mt in metal content and 129,300 mt in physical volume, up 2.5% MoM and down 31.6% YoY.