[SMM Analysis] Some Downstream Sectors Initiated Just-in-Time Procurement, Nickel Salt Prices Rose Significantly This Week

Some Downstream Sectors Started Just-in-Time Procurement, Nickel Salt Prices Rose Significantly This Week

As of Thursday this week, the SMM battery-grade nickel sulphate index stood at 31,387 yuan/mt, with the quotation range for battery-grade nickel sulphate between 30,800-33,000 yuan/mt, and the average price rebounded noticeably WoW.

Demand side, after destocking last month, some producers started stockpiling this week, but due to the significant impact of nickel prices on nickel sulphate prices, most transactions this week were just-in-time procurement; Supply side, nickel prices climbed further this week, increasing producers' concerns about rising raw material costs, some producers showed a strong willingness to hold prices firm, while others suspended quotations, leading to a relative decrease in nickel sulphate sales in the market. Looking ahead, nickel prices are expected to fluctuate upward, supporting rising nickel salt costs, but subsequent nickel price trends still need to be monitored.

Inventory side, the inventory index for upstream nickel salt smelters increased from 4.9 days to 5.4 days this week, while the inventory index for downstream precursor plants rose from 7.1 days to 9.1 days, with some producers restocking recently, and the inventory index for integrated enterprises increased from 7 days to 7.3 days; In terms of trading strength, the willingness to sell sentiment factor for upstream nickel salt smelters remained at 2.0 this week, while the procurement sentiment factor for downstream precursor plants increased from 2.8 to 2.9, with month-end trading sentiment rebounding, and the sentiment factor for integrated enterprises held steady at 2.4. (Historical data can be queried in the database.)