[SMM Analysis] Tight Supply-Demand Pattern for Spot Nickel Sulphate, Nickel Salt Prices Continued to Rise This Week

Nickel Sulphate Supply-Demand Pattern Remains Tight, Nickel Salt Prices Continued to Rise This Week

As of Friday this week, the SMM battery-grade nickel sulphate index price stood at 27,958 yuan/mt, with the quotation range for battery-grade nickel sulphate at 28,020-28,220 yuan/mt, and the average price rose further WoW.

Demand side, approaching the National Day stocking period, some producers recently had raw material demand, and their acceptance of nickel salt prices increased; supply side, nickel salt smelters had limited spot supply, coupled with high-cost raw material cost pressure, supporting nickel salt quotations to continue rising. Looking ahead, some downstream enterprises still have procurement demand, and with current nickel sulphate spot cargo being tight, nickel salt prices are expected to have further room to rise.

Inventory side, this week the upstream nickel salt smelter inventory index remained at 4.5 days, the downstream precursor plant inventory index dropped from 9.5 days to 9.2 days, with inventory levels for both buyers and sellers generally low, and the integrated enterprise inventory index decreased from 7.3 days to 6.2 days; buying and selling strength side, this week the upstream nickel salt smelter willingness to sell sentiment factor remained at 1.5, the downstream precursor plant procurement sentiment factor rose from 2.9 to 3.1, and the integrated enterprise sentiment factor increased from 2.6 to 2.9, as some producers have stocking demand approaching the National Day. (Historical data can be queried in the database.)

Nickel Prices Slightly Declined This Week, Nickel Salt Production Costs Pulled Back Slightly

Cost side, MHP raw material market circulation was tight, and the MHP payable indicator remained high this week. Nickel prices side, the US interest rate cut was implemented this week, which did not exceed market expectations, and LME nickel prices slightly declined WoW. Overall for the week, nickel prices were slightly lower WoW, the MHP payable indicator remained high, and the immediate production cost for nickel salt slightly decreased WoW. As of Friday this week, the profit margins were -0.9% for using MHP, -2.0% for using crude slag, -2.5% for using nickel briquette, and 4.0% for using high-grade nickel matte.