[SMM Analysis] Chinese Buying Interest Strengthens, Drawing Attention to Shifts in Korea’s Nickel Sulphate Export Market

In early August, SMM launched the SMM Battery-grade Nickel Sulphate, CIF China price assessment to better reflect trading activity for overseas battery-grade nickel sulphate entering the Chinese market. With demand from Korea’s ternary materials sector yet to show a clear recovery, China continues to serve as an important export market for some Korean nickel sulphate suppliers. Against this backdrop, SMM reviewed recent market developments by tracking trading activity between Korean suppliers and Chinese buyers following the launch of the new price assessment.
Since mid-August, the SMM Battery-grade Nickel Sulphate, CIF China price has remained broadly stable around $3,700/wmt. The assessment slipped from $3,740.29/wmt on August 14 to $3,706.52/wmt on August 21, before edging back up to $3,716.07/wmt on August 28. While overall price volatility remained limited, market feedback indicated that Chinese buyers became more active in seeking Korean nickel sulphate toward the end of the month.

Chinese Buying Interest Strengthens Toward Late August

According to SMM’s market survey, Chinese buying inquiries for Korean nickel sulphate were already present in mid-August, while activity became more proactive toward the end of the month. More Chinese buyers were seen approaching suppliers directly to check available volumes and commercial terms.
Some Korean suppliers noted that Chinese buyers had become more active in procurement discussions. Rather than merely checking prevailing market prices, a growing number of inquiries focused on actual supply availability, suggesting that buyers’ willingness to secure feedstock had strengthened to some extent.
However, the recent change should not necessarily be interpreted as a clear rise in Korean nickel sulphate prices. The more notable shift has been the increase in procurement activity and buyer engagement. As transaction terms can vary depending on factors such as the LME nickel pricing period and contract structure, the change in market conditions is more evident in rising inquiry and negotiation activity than in any single price level.
 

Stronger Procurement Has Yet to Confirm a Recovery in End Demand

Despite stronger buying interest from China, Korean suppliers remain cautious about interpreting the trend as evidence of a broad recovery in the ternary battery value chain.
China’s nickel sulphate production capacity has expanded significantly in recent years, and it remains uncertain whether any recovery in precursor and cathode production will be sufficient to absorb the existing supply base. In Korea, there are also still limited signs of a meaningful improvement in operating rates among precursor and high-nickel cathode producers.
Lead times between contracting Korean material and its eventual delivery into China also need to be considered. As a result, it remains difficult to determine whether the recent increase in inquiries reflects near-term production requirements or more forward-looking procurement aimed at securing future supply.
At this stage, the market is therefore better characterized as one in which Chinese procurement sentiment is improving, while a corresponding recovery in downstream demand has yet to be clearly confirmed.

Near-Term Trading Sentiment Improves, but Sustainability Depends on Downstream Recovery

The increase in Chinese buying inquiries toward the end of August is likely to provide some near-term support to trading sentiment for Korean nickel sulphate exports. If Chinese buyers continue to seek feedstock, activity in the CIF China market could become more active.
However, persistent supply pressure in China’s nickel sulphate market, together with the still-limited recovery in Korea’s precursor and ternary materials demand, is likely to constrain further upside. The recent pickup in procurement alone is not yet sufficient to signal that the market has entered a structural recovery phase.
Going forward, the direction of Korea’s nickel sulphate export market will largely depend on whether current inquiries translate into sustained transactions and raw-material consumption, and whether precursor and cathode production in both Korea and China shows a more tangible recovery. For now, the key development is not a sharp move in prices, but rather a visible change in Chinese buyers’ procurement behavior.