Downstream Raw Material Procurement Demand Was High Nickel Salt Prices Expected to Continue Rising Post-Holiday
As of Friday, the SMM battery-grade nickel sulphate index stood at 28,187 yuan/mt, with the quotation range for battery-grade nickel sulphate at 28,220-28,420 yuan/mt, and the average price 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 were still expected to have room to rise after the holidays. 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 cost pressure from high-priced raw materials, 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 9.4 days, with inventory levels for both buyers and sellers generally low; the integrated enterprise inventory index rose from 6.2 days to 6.8 days. In terms of market strength, the upstream nickel salt smelter's Willingness to Sell Sentiment Factor held at 1.7 this week, while the downstream precursor plant's purchasing sentiment factor dropped from 3.3 to 2.9; after the month-end procurement period, transaction sentiment pulled back slightly, and the integrated enterprise sentiment factor decreased from 3.0 to 2.8. (Historical data can be queried in the database.)
MHP Payables Rose This Week, Nickel Sulphate Production Costs Increased
Cost side, the MHP raw material market was tight, and MHP payables rose this week. Regarding nickel prices, during the National Day holiday, weak US employment data fueled expectations of loose market liquidity, but nickel prices pulled back after bullish sentiment receded by Friday. Overall for the week, nickel prices were slightly lower WoW, while MHP payables increased, leading to higher immediate production costs for nickel sulphate. As of Friday, the profit margins were -2.8% for using MHP, -1.7% for using crude slag, -2.4% for using nickel briquette, and 3.4% for using high-grade nickel matte.
