[SMM Analysis] Spot supply of nickel sulphate remains tight, with nickel salt prices rising this week

Spot supply of nickel sulphate remains tight, with nickel salt prices rising this week.

As of Friday this week, the SMM battery-grade nickel sulphate index price was 27,212 yuan/mt, with the quotation range for battery-grade nickel sulphate being 27,190-27,690 yuan/mt, and the average price rising WoW.

Demand side, some producers have had restocking demand recently, with inquiries being more active in recent days. Their acceptance of nickel salt prices has increased, leading to an upward trend in transaction prices. Supply side, the overall inventory levels of nickel salt smelters are low, with limited available finished products. Coupled with the cost pressure from high-priced raw materials, producers have shown a strong reluctance to budge on prices, resulting in an overall increase in quotations. Looking ahead, precursor plants still have a certain demand for raw material stocking. Given the current tight supply of finished nickel sulphate products, nickel salt prices are expected to rise.

Nickel prices have rebounded slightly this week, with nickel salt production costs rising.

Cost side, transactions in the raw material market have not been active this week, with the MHP payable indicator remaining stable. Regarding nickel prices, the market has been mainly influenced by US economic data this week, with the US dollar index weakening, driving LME nickel prices to fluctuate upward. Throughout the week, nickel prices have rebounded slightly WoW, with the immediate production cost of nickel sulphate rising. As of Friday this week, the profit margin using MHP was -1.5%, using crude slag was -2.2%, using nickel briquette was -4.2%, and using high-grade nickel matte was 3.4%.