[SMM Nickel Sulphate Daily Review] June 24: Nickel prices plunged, nickel salt prices declined

On June 24, the SMM battery-grade nickel sulphate average price edged lower.

Cost side, market speculation over interest rate hike expectations intensified, nickel prices plunged sharply, and immediate production costs for nickel sulphate fell significantly. Supply side, the tight supply of intermediates remained unchanged, with MHP payables and prices of auxiliary materials like sulphuric acid staying high, and nickel salt smelters holding offers high, though some recycling enterprises released earlier low-cost inventories. Demand side, it was the mid-year period, downstream stockpiling sentiment was weak, and combined with relatively weak nickel prices, acceptance of nickel salt prices was relatively low. Today, the Willingness to Sell Sentiment Factor for upstream nickel salt smelters was 1.8, the procurement sentiment factor for downstream precursor plants was 2.5, and the sentiment factor for integrated enterprises was 2.4 (historical data can be accessed via the database).

Looking ahead, with the month-end procurement period approaching, the nickel sulphate market is expected to regain activity by month-end, but attention should be paid to the impact of nickel prices on cost support strength.

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