[SMM Analysis] Downstream Procurement Sentiment Remains Weak, Nickel Salt Prices Decline

Weak Downstream Procurement Sentiment, Nickel Salt Prices Declined

As of Thursday this week, the SMM battery-grade nickel sulphate index stood at 27,265 yuan/mt, with the quotation range for battery-grade nickel sulphate at 27,470-27,610 yuan/mt; the average price pulled back WoW.

Demand side, downstream production schedule expectations declined this month, some producers still had certain raw material inventory accumulation, and recent procurement sentiment remained relatively weak; supply side, some enterprises cut refined nickel production and shifted to selling nickel sulphate externally, driving expectations of looser supply, coupled with the fact that immediate costs for nickel salt weakened during the previous period of low nickel prices, leading to a softening in nickel sulphate quotations. Looking ahead, after demand pulled back this month, improved nickel sulphate supply may pressure nickel salt prices, but attention should be paid to whether the sustained rebound in nickel prices can support nickel sulphate quotations.

Inventory side, this week the upstream nickel salt smelter inventory index rose from 4.3 days to 4.7 days, while the downstream precursor plant inventory index increased from 7.9 days to 8.9 days; after minor month-end procurement, downstream inventory rose, and the integrated enterprise inventory index held steady at 7 days. In terms of trading strength, the upstream nickel salt smelter willingness to sell sentiment factor dropped from 1.9 to 1.8 this week, and the downstream precursor plant procurement sentiment factor fell from 2.9 to 2.8; overall transaction sentiment across upstream and downstream was weak, while the integrated enterprise sentiment factor remained at 2.7. (Historical data available in the database.)