【SMM Nickel Analysis】Nickel intermediate products were affected by the decline in nickel prices, showing a downward trend in prices.

From this week's MHP market performance, trading activity was weak, but price movements were significantly influenced by nickel prices. Demand side, the overall supply and demand in the intermediate products market remained tight, coupled with downstream demand entering the peak season, downstream enterprises' acceptance of high-priced MHP gradually improved, and demand support strengthened. Supply side, market availability of spot cargo remained tight, and seller offers were relatively firm, maintaining high levels. This week, MHP market activity was low, and the quotation coefficient remained stable. However, due to the release of increased refined nickel supply and high inventory suppressing nickel prices, the transmission effect of LME nickel's decline led to a certain degree of decrease in MHP absolute prices.

In the high-grade nickel matte market, spot inventory was tight but demand was weak, and prices fell along with nickel prices. The current high-grade nickel matte market presented a divergent pattern of "tight inventory and weak demand." In terms of spot inventory, the market remained tight, with no significant signs of loosening on the supply side.

Demand side performed weakly, with downstream enterprises showing low purchasing enthusiasm, and most smelters having limited acceptance of the current high coefficient for high-grade nickel matte, resulting in overall weak market trading activity. The tight supply and demand situation failed to effectively translate into price support. On the price side, directly affected by this week's decline in nickel prices, the absolute price of high-grade nickel matte experienced a certain degree of decrease.

As a core raw material for nickel intermediate product production, sulfur prices recently showed a continuous upward trend. Specifically, on one hand, market concerns over the situation in the Middle East and the Russia-Ukraine conflict intensified, increasing uncertainty in the sulfur supply chain; on the other hand, during the autumn fertilizer preparation peak season, demand for sulfur in the fertilizer production sector concentratedly released, with supply and demand fundamentals supporting price increases. For the September market outlook, demand for sulfur in the fertilizer production sector is expected to continue releasing, providing strong support for sulfur prices. The Indonesian sulfur market prices in September are highly likely to remain stable or continue the previous upward trend.