SHANGHAI, Jul 1 (SMM) – Lower subsidies weighed on China’s new energy vehicle sector and lowered demand for nickel sulphate, which accounted for the downtrend in prices of such materials since May.
As nickel prices strengthened from the middle of June, premiums of battery-grade nickel sulphate over nickel briquette fell below 10,000 yuan/mt in Ni content and stood at 7,430 yuan/mt in Ni content as of Friday June 28, SMM assessments showed.
When the premium stands below 10,000 yuan/mt in Ni content, precursor producers prefer directly purchasing nickel sulphate crystal as raw materials as such a small spread is not enough to cover the costs for dissolving nickel briquette or powder in sulphuric acid to make nickel sulphate.
Existing inventories or supplies under long-term contracts, however, might deter precursor producers from immediately giving up using refined nickel as feedstock.
![[SMM Analysis] Influenced by macro sentiment, MHP and high-grade nickel matte prices declined this week.](https://imgqn.smm.cn/usercenter/CWsEw20251217171732.jpeg)
