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Nickel prices are supported by the macro environment and positive fundamentals, and SHFE nickel has broken through the 140,000/mt mark. In the first week after the CNY, prices of battery-grade nickel sulphate rose significantly to stand at 35,000-36,000/mt (crystal). SMM survey showed that orders from downstream precursor factories continued to be strong. Domestic demand for battery-grade nickel sulphate continued to increase MoM in February, while domestic nickel sulphate supply decreased due to the CNY holiday and restrictions on raw materials (mainly intermediate products). Battery-grade nickel sulphate spot was still in short supply. In addition, SMM domestic nickel sulphate balance data showed that nickel sulphate has been in short supply from September 2020 to now, except for October.
SMM believes that it will be difficult for battery-grade nickel sulphate to return to a state of balance between supply and demand in the near term, and prices of battery-grade nickel sulphate will still have upward room.
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