SHANGHAI, Jun 9 (SMM) — China's output of nickel sulphate stood at 97,700 mt or 21,500 mt in metal content in May, down 5.82% from the previous month but up 128.57% year on year. Among them, the output of battery-grade nickel sulphate was 92,400 mt, and that of electroplating-grade nickel sulphate was 5,300 mt.
The stocks of intermediate raw materials in the nickel sulphate smelters were limited in May, and the salt plants in south west regions even halted production. The overhaul of overseas MHP smelters for maintenance in mid-May led to the tight market supply, and many users had to cut down production.
According to SMM survey, China's output of nickel sulphate produced with MHP totalled only 6,923 mt in May, the lowest level in a year. However, the output of nickel sulphate produced with refined nickel continued to increase steadily, accounting for about 46% of total output.
The output of nickel sulphate is likely to stand stable as the demand from the new energy industry is stable, and many downstream companies have expansion plans. At present, the domestic supply of nickel sulphate crystals is tight and the prices remain high, so there is still an economic drive for the production of nickel sulphate from self-dissolved nickel briquette or scrap. The nickel briquette dissolution lines will keep increasing in June and July, which will fill the supply gap. Therefore, the national nickel sulphate production will increase 5.53% month on month to 22,700 mt in metal content in June, close to the level in April.