[SMM Analysis] Downstream Raw Material Procurement Demand Is High, Post-Holiday Nickel Salt Prices May Continue to Rise

Downstream Raw Material Procurement Demand Was High  Nickel Salt Prices May Continue to Rise After the Holiday

As of Thursday, the SMM battery-grade nickel sulphate index price stood at 28,128 yuan/mt, with the quotation range for battery-grade nickel sulphate between 28,160-28,360 yuan/mt, and the average price over the past three trading days rose further.

During the National Day and Mid-Autumn Festival holidays, the domestic nickel sulphate market was generally on holiday, with spot transactions suspended, but prices are expected to have further upside after the holiday. Demand side, the power market remained in the peak season, and some downstream producers had strong raw material procurement demand, with acceptance of nickel salt prices increasing; supply side, nickel salt smelters had limited spot supply, coupled with high raw material cost pressure, supporting nickel salt quotations to remain high.

Inventory side, this week the upstream nickel salt smelter inventory index remained at 4.5 days, while the downstream precursor plant inventory index increased from 8.9 days to 9.1 days, with overall low inventory levels for both buyers and sellers, and the integrated enterprise inventory index remained at 6.2 days; market strength side, this week the upstream nickel salt smelter willingness to sell sentiment factor remained at 1.7, while the downstream precursor plant procurement sentiment factor decreased from 3.3 to 3.0, with trading sentiment pulling back slightly after the month-end procurement period, and the integrated enterprise sentiment factor remained at 3.0. (Historical data can be queried in the database.)