Indonesian MHP Nickel and High-Grade Nickel Matte Prices Drop, Cobalt Rises

Spanish technology manufacturer Fagor Arrasate has expanded its coil processing capabilities by acquiring Herpasa, a stainless steel tank manufacturer based in Castellbisbal, following the conclusion of the latter's insolvency proceedings. Fagor Arrasate stated that its immediate priority is to ensure continuity of Herpasa's ongoing projects while providing the resources and sales network needed to develop the business further. The entire workforce will be retained and strengthened to preserve the specialist expertise associated with the brand. No financial terms were disclosed.

China's stainless steel market faces near-term pressure in Q3 before an anticipated rebound driven by production cuts and seasonal demand recovery. High temperatures and rainfall in July and August typically slow construction activity, dampening inventory depletion in key hubs such as Wuxi and Foshan. To counter shrinking margins, mills initiated maintenance shutdowns, with planned output estimated to decline 4.11% over June-July. By September, the traditional "Golden September, Silver October" peak season combined with equipment upgrade policies should revive terminal procurement. On the macro front, potential US rate hikes and tariff proposals weigh on global metal markets, while domestically, new capacity replacement rules are accelerating the phase-out of obsolete production. With raw material cost support fading, supply-demand fundamentals are set to become the primary market driver.

[7.3 Morning Meeting Minutes] US June ADP employment increased by 98,000, the smallest gain since March and below market expectations of 118,000. The most-traded SHFE nickel 2609 contract moved sideways in morning trading, closing the session at 125,880 yuan/mt, down 0.41%. A stronger US dollar and a shift in market expectations toward a more "hawkish" US Fed policy stance kept the macro environment challenging. Markets turned their attention to this week's US ADP and non-farm payrolls data. In the short term, nickel prices are expected to trade in the doldrums within the range of 125,000-135,000 yuan/mt.