Souring losses pushed nickel sulphate to hold prices firm [SMM Nickel Sulphate Daily Review]

On May 21, SMM battery-grade nickel sulphate index price was 32,004 yuan/mt, up 417 yuan/mt from the previous working day. The battery-grade nickel sulphate price was 31,500-32,500 yuan/mt, with an average price increase of 400 yuan/mt from the previous working day. Nickel sulphate supply was constrained by current and expected shortage of raw materials, and finished product inventories remained at low levels. As raw material costs rose amid the high raw material discount coefficient and high nickel prices, nickel sulphate smelters suffered soaring losses, thereby they held prices strongly firm. Although demand weakened somewhat, downstream had to accept high-priced nickel sulphate as some precursor makers did not secure enough inventories. As a result, nickel sulphate prices rebounded. However, due to high nickel prices on Monday, the profit recovery was limited.