Nickel Sulphate Prices Soar in Feb

SHANGHAI, Mar 16 (SMM) - In February, battery-grade nickel sulphate prices extended the growth thanks to the demand from the electrowinning nickel sector. Prices of battery-grade nickel sulphate surged from 37,600 yuan/mt to 40,150 yuan/mt, up 6.78%. The reasons for the rapid rise in nickel sulphate prices in February are as follows. 1. Demand from the electrowinning nickel sector boomed. Some manufacturers began to produce electrowinning nickel spurred by the high profit margins, driving up the nickel sulphate demand. 2. Finished product inventories carried by nickel sulphate manufacturers dropped. Besides, some electrowinning nickel producers preferred nickel sulphate crystals which were low in spot inventory, leading to a supply deficit of nickel sulphate crystals. 3. MHP supply remained tight as the output release of some Indonesian projects was lower than expected. 4. The processing fees have also been reduced to 29,000 yuan/mt since February. Nickel sulphate enterprises that got stronger cost support were less willing to ship at low prices.