【SMM Nickel Sulphate Daily Review】December 23: Immediate Costs Rebound, Nickel Salt Prices Hold Steady

On December 23, the SMM battery-grade nickel sulphate index price was 27,094 yuan/mt, with the quotation range for battery-grade nickel sulphate between 27,380-27,480 yuan/mt, and the average price held steady compared to yesterday.

Cost side, stimulated by Indonesia's potential policy to reduce nickel ore supply, LME nickel prices continued to rebound, driving up the immediate production costs for nickel salt smelters. Supply side, raw material costs led some enterprises to have an inclination to raise quotations; however, due to relatively weak downstream raw material demand, upstream efforts to hold prices firm have not yet translated into downstream acceptance. Demand side, as the downstream market entered the off-season and approached month-end, only some producers began inquiries, and recent stockpiling sentiment for nickel salt remained relatively sluggish. Today, the willingness to sell sentiment factor for upstream nickel salt smelters was 1.8, the purchasing sentiment factor for downstream precursor plants was 2.7, and the sentiment factor for integrated enterprises was 2.6 (historical data can be queried by logging into the database).

Looking ahead, as the month-end procurement period approaches, weak downstream demand continues to exert some pressure on prices. If nickel prices can rebound, it may provide cost support for nickel sulphate prices.

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