On December 8, the SMM battery-grade nickel sulphate index price was 27,244 yuan/mt. The quotation range for battery-grade nickel sulphate was 27,460-27,600 yuan/mt, with the average price flat from the previous day.
Cost side, recent rising expectations for a US interest rate cut led nickel prices to fluctuate rangebound, and the immediate production cost for nickel salt smelters overall rebounded. Supply side, while some enterprises previously showed an inclination to switch refined nickel production to nickel salt, creating some expectations of looser raw material supply, the recent rebound in nickel prices and associated cost increases prompted some enterprises to consider raising quotations. Demand side, as some producers still hold raw material inventory, procurement sentiment for nickel sulphate was relatively sluggish recently, and transactions are expected to be relatively scattered this month. Today, the upstream nickel salt smelters' Willingness to Sell Sentiment Factor was 1.8, the downstream precursor plants' Procurement Sentiment Factor was 2.8, and the integrated enterprises' Sentiment Factor was 2.7 (historical data is available by logging into the database).
Looking ahead, with no significant increase in downstream demand, rising nickel sulphate supply will exert some pressure on prices. However, if nickel prices rebound further, it may provide some support to production costs and bolster nickel sulphate prices.
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