[SMM Nickel Sulphate Daily Review] November 20: Increased Supply from Refined Nickel Conversion Puts Pressure on Nickel Salt Prices

On November 20, the SMM battery-grade nickel sulphate index price was 28,076 yuan/mt, with the quotation range for battery-grade nickel sulphate between 28,060-28,280 yuan/mt; the average price declined compared to the previous day.

Cost side, the strong US dollar index and high inventory continued to suppress LME nickel prices, and the immediate production cost for nickel salt remained low recently. Supply side, nickel salt smelters maintained low inventory levels, spot cargo circulation in the market was relatively tight, coupled with raw material cost pressure, which provided some support to nickel salt smelters' quotations. However, as some enterprises showed an inclination to shift from refined nickel to nickel salt production, there were certain expectations of looser raw material supply in the market. Demand side, the monthly procurement period had passed, downstream purchasing sentiment was weak mid-month, and price acceptance slightly declined MoM. Today, the Willingness to Sell Sentiment Factor for upstream nickel salt smelters was 1.6, while the Purchasing Sentiment Factor for downstream precursor plants was 2.7, and the sentiment factor for integrated enterprises was 2.7 (historical data is available in the database).

Looking ahead, with no significant increase in downstream demand, rising nickel sulphate supply is expected to exert some pressure on prices.

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