Nickel Sulfate Price Review and Forecast

Price performance:

Temporarily holding stable after inching upward. The current price of nickel sulphate is 30,500-31,000 yuan/mt, with transactions done at the lower end of the price range or average price.

Cost side:

Traders held prices firm amid limited MHP supply. Demand side, nickel sulphate smelters secured raw materials for Q2, waiting for arrival at ports. Some dependent on small-scale external procurement were reluctant to purchase MHP due to high nickel prices and MHP discount coefficient. The overall market activities were scarce. The nickel sulphate discount coefficient ran stable, and will stay at 80% in Q2. Looking ahead, the discount coefficient is expected to hold stable in the short term amid limited retail purchases and tight supply. The output of Indonesian high-grade nickel matte increased slightly. As new projects gradually ramped up production, the supply gradually became loose in April-May, while the demand held stable. Looking forward, the discount coefficient will show a gradual downward trend amid ample supply.

Fundamentals:

Affected by tight raw material supply and smelters’ losses, the output in April was 34,000 mt in metal content, up 0.66% MoM and 13.54% YoY. SMM estimates that the nickel sulphate output will be 33,200 mt in metal content in May, down 3.07% MoM but up 1.4% YoY, highlighting a supply crunch. The nickel sulphate demand from precursors improved in April. Precursor makers barely built stocks and purchased for rigid demand amid tight supply. However, the orders in May were reduced, as leading manufacturers have secured nickel raw materials for May and Indonesian nickel sulphate arrived at ports. Smelters held prices firm due to high nickel prices and losses caused by rising MHP prices. Therefore, short-term nickel sulphate prices will run stable. Looking ahead, nickel sulphate prices may fall if smelters’ profits recover from falling nickel prices. Nickel Sulfate Price Review and Forecast

Please do not hesitate to contact Jean at jeantang@smm.cn or 86-19946295759 if you have any question or inquiry.