【SMM Analysis】Nickel Prices and Supply-Demand Dynamics Drove Intermediate Product Prices Higher This Week

From the MHP market perspective, supply side, currently available MHP resources for external sales showed sustained tightness. Some traders suspended quotations due to depleted inventories, while circulating spot cargo volumes shrank significantly, substantially strengthening sellers' bargaining power. Meanwhile, forward MHP quotations exhibited steady upward momentum, coupled with the spillover effect from persistently rising cobalt intermediate product prices, further elevating cobalt element quotations and actual transaction coefficients in MHP. Demand side, downstream markets saw sporadic inquiries this week, but overall transaction sentiment remained subdued without forming substantial procurement support.

Regarding correlated market influences, LME nickel prices performed strongly this week: on one hand benefiting from emerging bottom support in nickel prices, and on the other hand boosted by favorable signals from US macro policies, driving LME nickel to fluctuate upward. Consequently, current MHP prices showed marked increases under the transmission effect of LME nickel's rise.

In the high-grade nickel matte market, supply side exhibited tight availability with some traders holding only limited inventory. Quotations continued rising this week, primarily driven by downstream raw material shortages. Several smelters accepted high-priced purchases to maintain production, pushing transaction coefficients upward simultaneously.

As a key auxiliary material for nickel intermediate product production, sulfur prices remained on an upward trajectory recently. Cost side, international crude oil prices staged periodic increases this week due to escalating geopolitical risks, indirectly raising sulfur production and transportation costs. Demand side, traditional downstream industries entered autumn production peaks with overall stronger sulfur procurement demand. Under dual effects of cost support and demand stimulation, Indonesian sulfur prices maintained their upward trend this week.