Nickel sulphate producers raised usage of nickel briquette in feedstock in Oct

Published: Nov 15, 2019 12:05 (GMT+8)

Save

Reduced prices of Wuxi nickel triggered the recovery of lines that produce with refined nickel.

SHANGHAI, Nov 15 (SMM) – Nickel sulphate producers in China used a higher ratio of nickel briquette/powder in their feedstock in October, despite weakening demand for the battery material since June, as reduced prices of Wuxi nickel last month triggered the recovery of lines that produce with refined nickel.

Last month, discounts of nickel on the Wuxi-based China Stainless Steel Exchange once deepened to 10,000 yuan/mt against Shanghai nickel prices. Spot nickel briquette in Wuxi also received heavy discounts.

An SMM survey showed that the proportion of nickel briquette/powder in raw materials to produce nickel sulphate rebounded to 22% in October, from 16% in August-September.

Proportion of raw materials for producing nickel sulphate

National subsidy cuts for new energy vehicles, which took effect from June 25, slashed demand for nickel sulphate and cut prices of battery-grade nickel sulphate to discounts against nickel briquette/powder in July-September. This forced nickel sulphate producers, mostly ternary precursor mills, to scale back using refined nickel as feedstock.

The price spread between battery-grade nickel sulphate and nickel briquette/powder were at highs above 10,000 yuan/mt, in metal content basis, in the first half of this year, bolstered by brisk downstream demand before NEV subsidy cuts.

This saw the proportion of nickel briquette/powder in raw materials as high as 32% in April.

While the premiums again slipped since mid-October, SMM expects the usage of nickel briquette/powder to stabilise in November-December as more production lines will come online.

Premiums of battery-grade nickel sulphate against nickel briquette/powder

Ternary precursor mills account for the majority of the refined-nickel-using nickel sulphate producers as they take advantage of the nickel sulphate solution generated by dissolving nickel briquette/powder to directly produce ternary precursor.

Scrap and intermediate products obtained by hydrometallurgical processing are another two essential raw materials for producing nickel sulphate.

Limited availability and capacity of scrap and intermediate products, however, drove nickel sulphate producers to seek alternative refined nickel, despite its higher costs.

Market commentary Nickel briquette Nickel sulphate

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

12 hours ago

[SMM Nickel Flash News] Indonesia Update — October 5, 2026

Indonesian nickel ore CIF average prices remained broadly stable, with the latest SMM assessment: 1.2% Ni: CIF price at $25.5/wmt, unchanged 1.3% Ni: CIF price at $27.5/wmt, unchanged 1.4% Ni: CIF price at $48.7/wmt, unchanged 1.5% Ni: CIF price at $54.2/wmt, unchanged 1.6% Ni: CIF price at $59.0/wmt, unchanged In the upstream market, nickel ore prices have weakened from late-September levels as additional RKAB quotas gradually enter the market and sellers face increasing pressure to adjust prices. SMM reported that discounts have officially emerged, with some ore prices falling below the HPM benchmark. Meanwhile, the first-half October nickel HMA was reduced to $16,322.67/mt, down $375.33/mt, or 2.25%, from the second-half September HMA of $16,698/mt.

12 hours ago

【SMM Nickel Flash News】Nickel Weather Risks Remain Manageable on October 5–11

Weather conditions across major nickel-producing and logistics areas in the Philippines, Indonesia and China are expected to remain generally manageable on October 5–11, with localized weather potentially causing short-term operational disruptions. In the Philippines, Palawan and Surigao may see scattered rain and thunderstorms on October 6–7, while rainfall could increase in Eastern Visayas and Mindanao on October 8–9, posing temporary risks to mine-road transport, ore barging and vessel loading. In Indonesia, Morowali and Konawe are expected to remain relatively stable, with low rainfall and no significant storm activity. Halmahera and Obi may see occasional rain and stronger winds, which could briefly affect marine logistics. In China, major nickel ore receiving ports are expected to remain largely operational, although localized rain and stronger winds could cause brief delays to vessel handling and cargo transportation.

12 hours ago

16 hours ago

[SMM Nickel Flash News] Unrest at PT Askon in Morowali Raises Concerns

On October 2, protests over mining-related dust and environmental impacts escalated into unrest at PT Astima Konstruksi (PT Askon) in Matarape Village, Morowali Regency, Central Sulawesi, Indonesia. Local media reported that protesters burned several vehicles and excavators, while access to the company's hauling road and jetty was blocked, disrupting material transportation. Police subsequently evacuated Chinese nationals from the site. The incident has raised concerns over potential disruptions to nearby nickel mining and logistics activities. However, as of October 5, no confirmed reports have established the extent of production suspensions or reductions at specific nickel mines. Further attention should be paid to the restoration of transportation access, local security conditions, and any subsequent impact on nickel ore supply.

16 hours ago