[SMM Analysis] Downstream Procurement Sentiment Pulled Back, Nickel Salt Prices Slightly Declined This Week

Downstream Purchasing Sentiment Pulled Back; Nickel Salt Prices Edged Down WoW

As of Thursday this week, the SMM battery-grade nickel sulphate index stood at 28,295 yuan/mt, with the quotation range for battery-grade nickel sulphate at 28,340-28,650 yuan/mt; the average price dropped WoW.

Demand side, the raw material procurement period passed by month-end, downstream inquiries weakened WoW. As some producers accumulated certain raw material inventory, price acceptance slightly declined. Supply side, spot nickel sulphate availability tightened slightly less MoM, but cost pressure from high-priced raw materials continued to support nickel sulphate quotations at elevated levels. Looking ahead, downstream raw material procurement demand is not expected to weaken significantly YoY this month, but improved nickel sulphate supply may exert pressure on nickel sulphate prices.

Inventory side, the upstream nickel salt smelter inventory index rose from 4.1 days to 4.3 days WoW; the downstream precursor plant inventory index fell from 7.4 days to 9 days; downstream plants replenished inventory after month-end procurement, and the integrated enterprise inventory index increased from 6.5 days to 6.8 days. Willingness to sell and buy side, the upstream nickel salt smelter's Willingness to Sell Sentiment Factor held at 1.7 WoW, while the downstream precursor plant's purchasing sentiment factor dropped from 3.1 to 2.7; after the procurement period, transaction sentiment pulled back, and the integrated enterprise sentiment factor remained at 2.7. (Historical data available in the database.)