[SMM Analysis] Affected by the pullback in nickel prices, the prices of nickel intermediate products have declined.

Affected by the pullback in nickel prices, the prices of nickel intermediate products have declined somewhat.

This week, in the MHP market, sellers' spot inventory remained at a relatively low level, while there was still restocking demand in the market. Some sellers raised their quotes, and downstream enterprises were relatively cautious in accepting high-priced resources, maintaining a rational purchasing pace. Demand side, this week, downstream refined nickel producers and some traders had restocking demand and made purchases. From the market's transaction performance this week, the MHP coefficient remained stable.

The high-grade nickel matte market presented a "dual weakness and balance" pattern this week. On the supply side, sellers' spot inventory continued to be at a relatively low level, and the amount of resources available for external sales was limited. On the demand side, performance was weak. This week, downstream enterprises' enthusiasm for inquiring about high-grade nickel matte was not high, and the actual purchasing sentiment was weak, resulting in poor overall market activity. The transaction coefficient in the high-grade nickel matte market also remained stable this week.

As a key auxiliary material for the production of nickel intermediate products, sulfur prices rose significantly this week. The main driving factors include two aspects: First, the core downstream sector of sulfur - autumn fertilizer production - entered the fertilizer preparation cycle, with a concentrated release of staged demand, boosting purchasing enthusiasm; Second, international crude oil prices rose due to sentiment boosted by "concerns over Russian supply disruptions." As sulfur is a by-product of refining, its price linkage with the crude oil industry chain strengthened, further supporting the rise in sulfur prices.

This week, LME nickel prices showed a pullback trend, mainly suppressed by two factors: First, the US dollar index continued to strengthen. As a commodity priced in US dollars, nickel prices were directly suppressed by the exchange rate level; Second, LME nickel inventory exceeded 209,000 mt, reaching a staged high, with inventory suppressing nickel price trends.

Affected by the downward transmission of LME nickel prices, the spot price of MHP also fell to a certain extent this week.