SMM analysis on China June nickel sulphate output and July forecast

In June, China's nickel sulphate production was 30,500 mt in metal content, or 139,100 mt in physical content (-6.52% MoM, -12.82% YoY). In June, active destocking and inventory adjustments by downstream cathode producers negatively affected precursor production. Precursor producers slowed down their nickel sulphate procurement, leading to reduced production at nickel sulphate plants.

Heading into July, due to excessive discounts offered by nickel sulphate plants to promote sales, they suffered losses, resulting in lower operating rates and scheduled production. China's nickel sulphate production in July is expected to be 30,100 mt in metal content, or 137,000 mt in physical content (-1.5% MoM, -25.35% YoY).