[SMM Analysis] This week, the nickel intermediate product market saw low activity, with prices for MHP and high-grade nickel matte declining.

This week, the MHP market was in the doldrums. Demand side, off-season led to an expected decline in the nickel sulphate production schedule, resulting in weak rigid demand for MHP. Additionally, some nickel salt and refined nickel plants had completed partial MHP stockpiling. Downstream players adopted a wait-and-see attitude, with relatively low purchase willingness. Supply side, some sellers adjusted their offers. Spot MHP cargoes available in the market were limited. Nickel payables quotes remained high, while cobalt payables quotes edged down. Overall, MHP nickel payables were flat WoW, and cobalt payables saw a slight decrease.

This week, the supply-demand pattern for high-grade nickel matte remained tight, with limited market transactions. Payables were expected to stay high.

For the key auxiliary material sulphur, Sulphur (Indonesia CIF) prices maintained an upward trend this week. Although domestic sulphur prices in China fluctuated considerably and fell WoW, prices for mainstream sources from the Middle East remained firm internationally. Given the prominent supply-demand imbalance, Sulphur (CIF Indonesia) prices are expected to have further upside room.

Nickel prices fell WoW, pressured by high inventory and weak demand fundamentals. Considering the payables, prices for MHP and high-grade nickel matte decreased.