[SMM MHP Daily Review] May 15: Indonesian MHP price increased slightly

》View SMM Nickel Quotes, Data, and Market Analysis

As of now, the MHP coefficient (relative to the SMM battery-grade nickel sulphate index) stands at 84%-85%, with the FOB price of Indonesian MHP at $12,775/mt (Ni contained).

Demand side, this month's MHP prices fluctuated at highs due to weakened supply. Nickel salt smelters, concerned about costs, showed weaker procurement sentiment for MHP this month, with some reducing production or increasing the proportion of recycled materials as raw materials. Additionally, downstream demand in May showed no significant increase, leading to a production schedule for the overall nickel sulphate market that was basically flat compared to April. Therefore, MHP procurement sentiment in May eased somewhat. Supply side, Indonesian MHP projects gradually resumed in May, but MHP port arrivals were still affected by April's production cuts. Thus, MHP supply remained tight in May, with no downward trend in the MHP coefficient. Cost side, Indonesia's latest PNBP royalty policy, tentatively set to take effect on the 26th, will directly increase the sales cost of nickel ore. Market feedback indicates that the policy-induced price increase for hydrometallurgical nickel ore procurement was already evident in early April. Moreover, the royalty on hydrometallurgical ore itself is relatively low; for a 1.3-grade nickel ore, it requires an additional payment of about $0.75/wmt compared to before the PNBP amendment. Therefore, the PNBP policy is expected to have a relatively limited impact on MHP production costs in the short term.

》View SMM Nickel Product Spot Quotes

》Order and View SMM Metal Spot Historical Price Trends

[For more content, subscribe to SMM Nickel Research Group products "China Nickel-Chromium-Stainless Steel Industry Chain Regular Report" and "China Nickel-Chromium-Stainless Steel Industry Chain High-End Report" to obtainthe latest data analysis and market insights on nickel ore, nickel pig iron (China + Indonesia), refined nickel, nickel sulphate, chrome ore,ferrochrome, and stainless steel (China + Indonesia)!]

》Click to Subscribe to SMM China Nickel Industry Chain Annual Report, Master Comprehensive and In-Depth Industry Chain Data, Survey Information, and SMM Professional Analysis