[SMM Nickel Intermediate Products Daily Review] June 26: MHP and high-grade nickel matte nickel prices declined, while cobalt prices rose.

As of now, the FOB price of Indonesian MHP nickel is $15,851/mt Ni, and the Indonesian MHP cobalt FOB price is $51,475/mt Co. MHP payables (against the SMM battery-grade nickel sulphate index) are 81.5-83, and the MHP cobalt element payable indicator (against SMM refined cobalt (Rotterdam warehouse)) is 97. The Indonesian high-grade nickel matte FOB price is $15,936/mt Ni.

In the MHP market, supply side, spot cargo availability is limited, with some sellers suspending offers. Additionally, the supply reduction of MHP caused by sulphur has not yet significantly recovered, and some producers' nickel payables quotes remain at high levels. Demand side, this month coincides with the mid-year period, nickel sulphate prices have been relatively weak, and weak price acceptance by nickel salt smelters is capping the upside room for MHP payables. Looking ahead, upstream cost support and downstream demand patterns remain unchanged, and MHP nickel and cobalt payables may face pressure due to weak nickel sulphate prices.

In the high-grade nickel matte market, supply side, available market volumes are tight, and seller offers are firm. Demand side, currently, for enterprises purchasing external raw materials, the cost-effectiveness of using high-grade nickel matte is stronger compared to using MHP. Amid tight supply-demand conditions, nickel payables are currently supported at high levels. Looking ahead, amid expectations of tightening MHP supply, the supplementary role of high-grade nickel matte as an alternative raw material is becoming more prominent, making it difficult for nickel payables to decline.

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