[SMM Analysis] The market activity of hydrometallurgy intermediate products has recovered, and prices continue to strengthen

The hydrometallurgy intermediate products market has shown signs of recovery, with prices continuing to strengthen.

Recently, the MHP market has been on an upward trend. Demand side, some integrated enterprises and refined nickel producers have been restocking raw materials, driving up the transaction coefficient in the market this week. Meanwhile, some downstream enterprises have started signing Q4 orders, and their acceptance of intermediate product prices has increased. On the supply side, sellers' spot inventory is currently at a low level, with limited quantities available for external sales. Against the backdrop of ongoing restocking demand in the market, some sellers have raised their quotation coefficients, resulting in an upward trend in the MHP coefficient this week.

The high-grade nickel matte market has been relatively sluggish this week. The supply side has continued its previous trend, with sellers' spot inventory remaining at a low level and limited quantities available for external sales. However, the demand side has failed to provide effective support, as downstream enterprises have shown low enthusiasm for purchasing high-grade nickel matte, leading to poor overall market activity. With no significant changes on either the supply or demand side, the transaction coefficient in the high-grade nickel matte market has remained stable this week.

In the auxiliary material market, the price of sulfur, a key auxiliary material for nickel intermediate product production, has remained stable this week due to the slowdown in purchasing pace by downstream smelters. Looking ahead to August, with the approach of China's autumn fertilizer preparation period, the demand for sulfur from fertilizer production is expected to provide strong support, and therefore, it is anticipated that the Indonesian sulfur market price will remain stable or show an upward trend in August.

In terms of prices, driven by the increase in the MHP coefficient, the spot price of MHP has rebounded to a certain extent this week. However, the price of high-grade nickel matte has declined this week due to the downward trend in LME nickel prices.