SHANGHAI, Nov 17 (SMM) — Domestic nickel sulphate output in October stood at 17,000 mt of Ni content, and 77,400 mt of physical content, up 22.62% on the month and 45.43% year on year. Output of battery-grade nickel sulphate stood at 69,200 mt, and output of electroplating grade nickel sulphate stood at 8,200 mt. Total downstream demand for nickel sulphate increased 8% on the month in October. Demand for battery-grade nickel sulphate from new energy batteries rose 10% on the month.

Some nickel salt plants raised their operating rates to meet downstream demand; some precursor and cathode material factories purchased large volumes of nickel briquettes/powder against battery grade nickel sulphate deficit, with the nickel briquettes/powder dissolved into nickel sulphate on their own or by other plants. 

Downstream producers restocked raw materials to ensure stable nickel sulphate supply. In this scenario, output of nickel sulphate increased significantly in October.

Downstream demand for nickel sulphate is expected to increase slightly in November, and the production plan of nickel sulphate will be on par with October. The volume of self-dissolving nickel briquettes/powder by several of precursor/cathode material plants is likely to decrease slightly. Domestic nickel sulphate production in November is expected to drop 150 mt or 0.19% month on month to 77,200 mt.

Nickel sulphate inventories (Jan-Nov 2020)

 Source: SMM

For more information on the China nickel sector, please subscribe to China Nickel Weekly.