[SMM Analysis] Nickel Intermediate Product Demand Remained Stable and Costs Rose This Week

This Week, Nickel Intermediate Product Demand Was Stable and Costs Rose

MHP market supply-demand was tight. Demand side, downstream demand improved, with active inquiries from downstream nickel salt and refined nickel plants. Supply side, cobalt sulphate price growth slowed down, and the cobalt coefficient in MHP remained stable at highs. Against this backdrop, nickel and cobalt coefficients had strong market support this week.

High-grade nickel matte market substitution demand emerged. Due to tight spot MHP resources, some enterprises turned to purchasing high-grade nickel matte, with increased acceptance of its high coefficient. However, domestic spot circulating resources were limited, resulting in a market with "price but little volume."

Sulphur prices continued their upward trend. The international phosphate fertiliser procurement cycle overlapped with stockpiling demand for new projects in Indonesia, jointly driving up sulphur procurement costs. Amid tight spot resources, the market focused on the situation after winter phosphate fertiliser demand declines. Sulphur prices are expected to have further upside room or fluctuate at highs.

Indonesian MHP nickel FOB and Indonesian MHP cobalt FOB absolute prices diverged. Trade friction concerns persisted, LME nickel inventory rose, and LME nickel prices fell WoW this week, impacting the WoW decline in absolute prices for Indonesian MHP nickel FOB and high-grade nickel matte FOB; rising cobalt prices supported the WoW increase in absolute prices for Indonesian MHP cobalt FOB.