[SMM Analysis] Nickel Prices Remain Weak Amid Loose Expectations, Nickel Salt Prices Continue to Decline

Weak Nickel Prices and Loose Expectations Drive Further Decline in Nickel Salt Prices

As of Thursday this week, the SMM battery-grade nickel sulphate index stood at 27,572 yuan/mt, with the quotation range for battery-grade nickel sulphate at 27,740-27,900 yuan/mt. The average price dropped WoW.

Demand side, the month-end procurement period is approaching, but some producers still have accumulated raw material inventory, and price acceptance has not shown a significant rebound. Supply side, as some enterprises tend to cut production of refined nickel and instead sell nickel sulphate externally, this has driven expectations of loose supply. Looking ahead, with the month-end procurement period approaching, improved nickel salt supply this month may put pressure on nickel salt prices, but attention should be paid to whether the rebound in nickel prices can support the cost of nickel sulphate.

Inventory side, this week the upstream nickel salt smelter inventory index remained at 4.3 days, the downstream precursor plant inventory index dropped from 8.5 days to 7.9 days, and the integrated enterprise inventory index remained at 7 days. In terms of buying and selling strength, the upstream nickel salt smelter willingness to sell sentiment factor rose from 1.6 to 1.9 this week, while the downstream precursor plant procurement sentiment factor increased from 2.7 to 2.9. With the month-end procurement period approaching, market transaction sentiment improved, and the integrated enterprise sentiment factor remained at 2.7. (Historical data can be queried in the database.)