[SMM Analysis] Transaction Sentiment Remains Weak, Nickel Salt Prices Slightly Decline

Trading Sentiment Remains Weak, Nickel Salt Prices Slightly Decline

As of Thursday this week, the SMM battery-grade nickel sulphate index stood at 28,234 yuan/mt, with the quotation range for battery-grade nickel sulphate at 28,300-28,540 yuan/mt; the average price dropped WoW.

Demand side, trading sentiment remained relatively weak mid-month, as some producers had accumulated certain raw material inventory, leading to a slight decrease in price acceptance. Supply side, the tightness of spot nickel sulphate circulation improved slightly MoM, but cost pressure from high-priced raw materials continued to support nickel sulphate quotations at high levels. Looking ahead, downstream raw material procurement demand this month did not weaken significantly YoY, but improved nickel sulphate supply may put pressure on nickel sulphate prices.

Inventory side, the upstream nickel salt smelter inventory index remained at 4.3 days this week, the downstream precursor plant inventory index dropped from 9.4 days to 8.9 days, and the integrated enterprise inventory index remained at 6.5 days. Willingness to sell side, the upstream nickel salt smelter willingness to sell sentiment factor remained at 1.7 this week, the downstream precursor plant purchasing sentiment factor remained at 2.7, mid-month purchasing and trading sentiment stayed low, and the integrated enterprise sentiment factor remained at 2.7. (Historical data available in the database.)