Nickel Sulphate Transactions Relatively Mediocre, Nickel Salt Prices Flat WoW
As of Friday this week, the SMM battery-grade nickel sulphate index stood at 28,401 yuan/mt, with the quotation range for battery-grade nickel sulphate at 28,450-28,650 yuan/mt, and the average price flat WoW.
Demand side, approaching the month-end procurement period, some downstream producers started inquiries for next month's raw materials, but as some producers had accumulated certain raw material inventory, price acceptance did not improve significantly; supply side, nickel salt smelters basically sold out spot cargo, coupled with high-cost raw material cost pressure, supporting nickel salt quotations to remain high.
Inventory side, this week the upstream nickel salt smelter inventory index rose from 3.9 days to 4.1 days, while the downstream precursor plant inventory index dropped from 7.7 days to 7.4 days, with inventory levels for buyers and sellers generally low, and the integrated enterprise inventory index maintained at 6.5 days; buyer-seller strength side, this week the upstream nickel salt smelter willingness to sell sentiment factor held at 1.7, the downstream precursor plant procurement sentiment factor held at 3.1, some enterprises started inquiries for next month's raw materials, but transaction sentiment did not increase significantly WoW, and the integrated enterprise sentiment factor held at 2.7. (Historical data available via database login.)
MHP Payables Rose Further, Nickel Sulphate Production Costs Increased
Cost side, MHP raw material market circulation was tight, and MHP payables rose WoW. Nickel prices side, LME nickel inventory hit a record high, and nickel prices fell further under fundamental pressure. Overall for the week, although nickel prices dropped WoW, rising MHP payables drove the immediate production cost of nickel sulphate up WoW. As of Friday this week, the profit margin using MHP was -1.2%, using crude slag 0.1%, using nickel briquette -0.3%, and using high-grade nickel matte 6.2%.
