From this week's MHP market performance, supply side, market-available spot cargo remained tight, significantly enhancing sellers' bargaining power in transactions. Some traders raised offers, providing price support. Meanwhile, influenced by the transmission effect of rising cobalt sulphate prices, the cobalt coefficient in MHP also increased, further raising MHP's cost base and pricing expectations. Demand side, the overall intermediate products market is in a tight supply-demand balance, coupled with downstream industries entering the peak demand season, leading to the release of raw material procurement needs by enterprises. Against this backdrop, downstream enterprises gradually improved their acceptance of high MHP prices, with demand-side support for the market significantly strengthening. Considering factors from both supply and demand sides, MHP prices rose in absolute terms this week, driven by the increase in coefficients.
In the high-grade nickel matte market, supply side, domestic spot high-grade nickel matte availability is nearly exhausted, with scarce tradable resources. Some traders have suspended offers due to lack of cargo. Demand side, some downstream enterprises still have clear needs for external purchase of raw materials, but limited by the depletion of spot high-grade nickel matte availability, procurement transactions are difficult to conclude. Therefore, they may turn to other types of raw materials as substitutes to ensure production continuity.
As a key raw material for nickel intermediate product production, sulphur prices have continued to rise recently. Supply side, the tight availability of overseas sulphur cargo persists, providing solid support for sulphur prices. Demand side, influenced by just-in-time procurement in the Indonesian market, overall market acceptance of sulphur prices continues to increase, further driving prices upward. Looking ahead, current conflicts in some regions restrict the flow of certain overseas sulphur cargo; meanwhile, global sulphur demand continues to grow. Driven by both supply constraints and demand growth, sulphur prices are expected to have further upside room.
Regarding nickel prices, this week, positive US economic data and significantly strengthened market expectations for interest rate cuts, among other macro factors, led to an overall increase in LME nickel prices WoW. Combined with the reasons for coefficient increases, MHP and high-grade nickel matte prices overall showed a synchronous upward trend this week.
