Weak demand and sluggish transactions led to a decline in nickel salt prices this week.

On July 17, the SMM battery-grade nickel sulphate index price was 26,954 yuan/mt, with the quotation range for battery-grade nickel sulphate at 26,980-27,460 yuan/mt, and the average price remaining unchanged from yesterday.

Futures market: Overnight, LME copper opened at $9,610/mt, fluctuating rangebound in early trading before hitting a low of $9,588/mt.

[Morning Meeting Minutes on 7.17] US tariffs and economic data have disrupted the market, with LME nickel prices rebounding slightly. The immediate cost of nickel salts is expected to remain in the doldrums. Supply side, the overall inventory level of nickel salt smelters is low, with limited circulatable finished products. Some producers have shown reluctance to budge on prices, but weak demand has led to fewer transactions. Demand side, some producers have recently expressed restocking needs, and purchasing sentiment has slightly recovered compared to WoW. However, as the purchasing period has not yet arrived, the overall market enthusiasm for buying remains low.

As of now, the MHP coefficient (relative to the SMM battery-grade nickel sulphate index) ranges from 83.5% to 84%, and the FOB price of Indonesian MHP is $12,368/mt Ni.

On July 16, the SMM battery-grade nickel sulphate index price was 26,952 yuan/mt, with the quotation range for battery-grade nickel sulphate being 26,980-27,460 yuan/mt, and the average price remaining unchanged from yesterday.

Futures market: Overnight LME copper opened at $9,635.5/mt, initially fluctuated downward to hit a session low of $9,598/mt, then steadily climbed upward and reached a session high of $9,657.5/mt near the close, finally closing at $9,657.5/mt with a 0.15% gain.

[Morning Meeting Minutes on July 16] SMM reported on July 15 that the SS futures market showed a weak fluctuating trend during the day, influenced by the decline in SHFE nickel. In the spot market, driven by the increase in steel mills' futures prices, market trade quotes strengthened somewhat. Despite the continued weakness in downstream demand and the adverse impact of the futures market's pull back on transactions, resulting in unsatisfactory trading volumes, low-priced supplies had largely disappeared. Currently, due to the combined effects of production cuts by stainless steel mills and the rebound in the futures market from oversold conditions, the previous market downturn has eased somewhat. However, there has been no fundamental change in downstream demand, which remains in the off-season. Against the backdrop of market bulls and bears engaging in a tug-of-war, it is difficult for prices to rebound significantly.