[SMM Analysis] Nickel Intermediate Products Affected by Both Policies and Supply-Demand, Prices Showed an Upward Trend This Week

Nickel Intermediate Products Affected by Policies and Supply-Demand Dynamics, Prices Rose This Week

Due to the National Day holiday, MHP market transactions were limited this week. On the MHP nickel FOB price, supply side spot cargoes were tight, some traders raised offers, coupled with downstream restocking demand, enterprises' raw material procurement demand continued to be released, leading to a slight rise in the MHP nickel payables. On the MHP cobalt FOB price, cobalt sulphate prices rose strongly under DRC policies, impacting the cobalt payables in MHP to continue rising. Overall, the dual influence of nickel and cobalt payables pushed MHP absolute prices higher this week.

Affected by rising MHP prices and tight supply, some nickel salt and refined nickel enterprises sought alternative raw materials, forming support for high-grade nickel matte payable indicators. However, domestic spot resources were scarce, liquidity was insufficient, and some traders suspended offers.

As a key auxiliary material for nickel intermediate product production, sulphur prices continued to rise. Demand side, Indonesia's newly commissioned MHP projects stockpiling, procurement demand increased, providing strong support for sulphur prices. Supply side, sellers' spot cargo availability was insufficient, tight supply-demand pushed sulphur prices higher. Sulphur prices are expected to have further upside room.

On nickel prices, during the National Day holiday, LME non-ferrous metals generally rose, LME nickel prices overall increased WoW. Combined with the reasons for rising payables, MHP and high-grade nickel matte prices overall showed a synchronized upward trend this week.