[SMM Analysis] Nickel Intermediate Product Prices Continued to Rise This Week

This week in the MHP market, inquiries were active but transactions were limited. On the supply side, spot market liquidity was insufficient, and seller quotations remained firm. On the demand side, although nickel salt and refined nickel plants had restocking demand, downstream acceptance of high-priced MHP was low, with most participants adopting a wait-and-see attitude. Price-wise, the tight supply-demand situation supported the coefficient fluctuating at highs.

Although tight MHP spot supply brought supplementary demand for high-grade nickel matte as a raw material, the available spot liquidity in the high-grade nickel matte market was limited, resulting in few transactions this week.

For key auxiliary material sulfur, sulfur prices continued to climb this week. On November 30, QatarEnergy Marketing announced an increase in its December Qatar Sulfur Price (QSP) FOB price to $495/mt. As a result, overall sulfur market offers rose. Combined with expectations of stocking demand from the spring ploughing fertilizer industry, sulfur prices still have upside room.

Regarding nickel prices, market expectations for a US Fed interest rate cut intensified, and nickel prices rose MoM. Considering the coefficient, MHP and high-grade nickel matte prices showed an upward trend this week.