SHANGHAI, Apr 28 (SMM)—SHFE nickel weakened slightly last week, but quotes of battery-grade nickel sulphate stabilised at 31,000-32,000 yuan/mt (crystal) amid quiet trades and tight spot supply. Trades are expected to pick up this week due to monthly purchases. Quotes of battery-grade nickel sulphate are likely to fall to 30,500-31,500 yuan/mt if SHFE nickel prices remain at the recent lows.
Price forecast for battery-grade nickel sulphate this week: 30,000-31,000 yuan/mt (traditional procurement time; weak SHFE nickel prices; increasing supply of dissolved nickel briquette)
Premiums of battery-grade nickel sulphate over first-grade nickel (mainly nickel briquettes and powder) rose 10% last week and averaged 20,948 yuan/mt in metal content, higher than the processing fees at precursor plants using nickel briquettes/powder to produce liquefied nickel sulphate. The average price of nickel briquette dropped by 2% from the prior week to 122,000 yuan/mt. The average weekly price of battery-grade nickel sulphate remained flat from the previous week, expanding premiums of nickel sulphate over first-grade nickel last week.
Premiums of battery-grade nickel sulphate over first-grade nickel (briquette/powder) are expected to shrink slightly this week.
Profit margin of nickel sulphate produced with MHP and nickel briquettes rose slightly
The average weekly profit margin of liquefied nickel sulphate produced with self-solution nickel briquette stood at 11%, up on the week; the average weekly profit margin of nickel sulphate produced by mainstream MHP rose to 10%.
Battery-grade nickel sulphate prices stabilised, while costs of nickel sulphate produced by mainstream MHP and nickel briquette fell slightly, raising profit margin.
