[SMM Analysis] Refined Nickel Conversion Channel Opens, Nickel Salt Prices Fall Under Pressure

Refined Nickel Conversion Channel Opens, Nickel Salt Prices Under Pressure and Decline

As of Thursday this week, the SMM battery-grade nickel sulphate index stood at 27,977 yuan/mt, with the quotation range for battery-grade nickel sulphate at 28,060-28,280 yuan/mt; the average price declined WoW.

Demand side, transaction sentiment remained relatively weak mid-month, as some producers had accumulated certain raw material inventory, leading to weaker price acceptance. Supply side, as the premium of nickel sulphate prices over refined nickel has significantly exceeded the theoretical processing fee, some enterprises showed a tendency to convert refined nickel into nickel sulphate, driving expectations of looser supply. Looking ahead, with the month-end procurement period approaching, improved nickel salt supply this month is expected to put pressure on nickel salt prices.

Inventory side, this week the upstream nickel salt smelter inventory index held at 4.3 days, the downstream precursor plant inventory index dropped from 8.9 days to 8.5 days, and the integrated enterprise inventory index rose from 6.5 days to 7 days. Willingness to sell sentiment factor for upstream nickel salt smelters fell from 1.7 to 1.6 WoW, while the purchasing sentiment factor for downstream precursor plants held at 2.7; mid-month procurement transaction sentiment remained low, and the sentiment factor for integrated enterprises held at 2.7. (Historical data available in the database.)