[SMM Analysis] Affected by the rise in nickel prices, the prices of nickel intermediate products have increased

Affected by the rise in nickel prices, the prices of nickel intermediate products have also increased.

From the performance of the MHP market this week, the seller's current available quantity for external sales and spot inventory are both in a relatively tight state. On the demand side, some nickel salt smelters have restocking needs, but due to the limited increase in the selling price of nickel salts, it is difficult for them to accept MHP at higher prices. Therefore, the MHP coefficient remained stable this week.

In the high-grade nickel matte market, the seller's current spot inventory level of high-grade nickel matte is low, and the available quantity for external sales is limited. Meanwhile, downstream inquiries and purchase willingness for high-grade nickel matte were weak this week, and market activity was poor. The coefficient of high-grade nickel matte also remained stable.

In addition, the price of sulfur, a key auxiliary material for nickel intermediate products, has shown a downward trend this month. This is mainly due to the maintenance and production cuts of some downstream smelters, which have led to delays in sulfur purchases and a decrease in demand in July. Indonesian buyers have insufficient purchase willingness and only carry out a small amount of restocking for rigid demand, so suppliers have lowered their quotes. This week, the sulfur market has seen sluggish transactions, and prices have remained stable.

Overall, driven by positive macro sentiment, LME nickel prices have risen significantly this week. Affected by this, the spot prices of MHP and high-grade nickel matte have also increased.