[SMM Analysis] Nickel Salt Prices Continue to Decline, Market Sentiment Remains Tepid

On October 25, the SMM battery-grade nickel sulphate index price was 28,170 yuan/mt, and the battery-grade nickel sulphate prices ranged from 27,230 to 27,820 yuan/mt.

Demand side, due to expectations for production cuts in ternary cathode precursors this month, market activity decreased MoM. However, as the period of purchases for rigid demand approaches, market transactions and activity, though still subdued, showed some improvement WoW. Most companies had some willingness to restock, but acceptance of high-priced nickel salts remained weak. Nickel sulphate crystal quotes ranged from low-end SMM prices to on par with SMM prices, while mainstream transaction percentage payables were around 99% against SMM prices to low-end SMM prices. Cost side, recent LME nickel prices continued to decline, weakening cost support from raw materials, while coefficients for MHP and high-grade nickel matte remained stable. Supply side, with the price decline, most salt plants raised their transaction coefficients and chose to proactively cut production to schedule production based on sales in the face of losses.

Considering all factors, with weak demand expectations, salt plants are entering a tug-of-war with downstream buyers. However, as nickel prices fall, the sentiment to stand firm on quotes among salt plants has weakened, so nickel salt prices are expected to continue to decline slightly.