[SMM Analysis] Nickel Prices Pulled Back and Price Acceptance Declined, Nickel Salt Prices Fell This Week

Nickel prices pull back, price acceptance declines. Nickel salt prices edged lower this week.

As of Friday, the SMM battery-grade nickel sulphate index stood at 32,673 yuan/mt. The quotation range for battery-grade nickel sulphate was 32,050-33,550 yuan/mt, with the average price pulling back WoW.

Demand side, approaching the Chinese New Year procurement period, some producers have recent purchasing needs. However, as nickel prices have pulled back from the unilateral rise seen early in the month, downstream acceptance of nickel salt prices has declined. Supply side, producers still hold concerns about rising raw material costs, and some maintain a relatively strong willingness to hold prices firm. Available nickel sulphate for external sale in the market remains relatively scarce. Looking ahead, current nickel sulphate price movements primarily follow cost logic, and subsequent nickel price trends still require attention.

Inventory side, this week the upstream nickel salt smelter inventory index decreased from 5 days to 4.8 days. The downstream precursor plant inventory index fell from 9.1 days to 9.0 days, as some downstream producers undertook restocking actions recently. The integrated enterprise inventory index held steady at 7.3 days. Willingness to sell/buy side, this week the upstream nickel salt smelter Willingness to Sell Sentiment Factor decreased from 2.0 to 1.9. The downstream precursor plant procurement sentiment factor decreased from 2.8 to 2.7. The integrated enterprise sentiment factor remained at 2.4. (Historical data available via database login)

This week, nickel prices fluctuated upward, and nickel salt production costs increased.

Cost side, MHP payables market availability remained tight, and MHP payables held at high levels this week. Nickel prices side, expectations for production cuts at Indonesian nickel mines have not subsided. After several days of fluctuation this week, nickel prices rose significantly on Friday. Overall, nickel prices increased further WoW, MHP payables remained stable, driving the immediate production cost for nickel salts higher compared to last week.