[SMM Nickel Analysis] The nickel intermediate product market is tight, with the overall payable strengthening.

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

From the performance of the MHP market, the demand side still has support, and some refined nickel producers continue to have procurement needs, actively 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 the remaining quotations are also showing an upward trend. Considering both supply and demand factors, MHP prices have risen this week, driven by the increase in the payable.

The high-grade nickel matte market remains 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 demand side lacks sufficient support, as downstream enterprises have low acceptance of high-priced high-grade nickel matte, leading to low overall market transaction activity. Although the price payable of high-grade nickel matte has slightly increased due to higher seller quotations, it has been dragged down by falling nickel prices, resulting in a 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 due to local downstream smelters passively accepting high-priced spot cargo to ensure continuous production. Looking ahead to August, with the approaching autumn fertilizer preparation period in China, 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.