[SMM Analysis] Nickel Intermediate Product Market Tight, Coefficient Strengthens Overall

The nickel intermediate product market is tight, with the overall coefficient strengthening

. From the perspective of the MHP market, demand remains supported, with some refined nickel producers still having procurement needs and continuously inquiring about MHP prices; on the supply side, due to the overall tight supply and demand in the market and the popularity of goods, some traders have suspended quotations due to tight inventory, while other quotations are also showing an upward trend. Considering both supply and demand factors, this week, driven by the rising coefficient, the absolute price of MHP has increased.

The high-grade nickel matte market continues to be sluggish this week. On the supply side, the current spot inventory is in a state of shortage, and some traders have raised their quotations for high-grade nickel matte; however, the support from the demand side is insufficient, as downstream enterprises have a low acceptance of high-priced high-grade nickel matte, leading to low overall trading activity in the market. Although the price coefficient of high-grade nickel matte has slightly increased due to the rise in seller quotations, it has been dragged down by falling nickel prices, resulting in a continued downward trend in the absolute price of high-grade nickel matte this week.

In the auxiliary material market, sulfur, a key raw material for the production of nickel intermediate products, has seen its price continuously rise recently. This week, the price of sulfur in Indonesia has increased, mainly influenced by local downstream smelters accepting high-priced spot cargoes to ensure continuous production. Looking ahead to August, as China's autumn fertilizer preparation period approaches, the demand for sulfur in the fertilizer production sector is expected to be released, providing strong support for sulfur prices. Therefore, it is anticipated that the overall sulfur market price in Indonesia in August will remain stable or continue to show an upward trend.