[SMM Analysis] Spot intermediate product transactions were sluggish this week, with market demand in the doldrums.

Affected by the overall downstream entry into the off-season, nickel intermediate product transactions were relatively sluggish this week, with market demand remaining in the doldrums.

In the MHP market this week, spot market transactions were limited. Demand side, as the year-end approached, spot purchase willingness from nickel salt and refined nickel plants declined, with buyers observing upstream quotations, preparing raw material inventory for Q1, and buying on dips. Supply side, some sellers adjusted their offers, further lowering the cobalt payables to align with market supply-demand conditions and balance the rise in MHP's absolute nickel price driven by higher nickel prices.

In the high-grade nickel matte market this week, spot market availability was insufficient, creating a situation of "price without market."

For key auxiliary material sulfur, downstream sectors were under pressure but prices remained firm. Sulfur (Indonesia CIF) prices rose again, while sulfur (Middle East FOB) prices were even firmer, maintaining at $515-525/mt FOB. Due to the overall pattern of demand exceeding supply, the price direction remained firm towards the year-end.

Regarding nickel prices, expectations of supply contraction driven by Indonesian policies stimulated bullish sentiment, leading to a significant rebound in nickel prices, which later corrected under pressure from high inventory and weak demand fundamentals. Overall, nickel prices rose WoW this week. Considering coefficients, nickel prices for MHP and high-grade nickel matte increased, while cobalt prices for MHP decreased.