[SMM Nickel Sulphate Daily Review] On 6 November, High Premiums for Refined Nickel Ease Supply Pressure, Nickel Sulphate Prices Rise Slightly

On November 6, the average price of SMM battery-grade nickel sulphate edged up slightly.

Cost side, the US midterm election results and Indonesia's quota announcements resonated, driving nickel prices higher today and pushing up the immediate production cost of nickel sulphate. Supply side, some producers with high inventory levels sought production cuts to destock. As refined nickel continued to trade at a premium over nickel briquette, refined nickel smelters switched back to their original production, easing the short-term supply pressure on nickel sulphate. Demand side, with expectations of reduced end-use demand, downstream enterprises showed weak sentiment in building spot order inventories and relatively low acceptance of nickel salt prices. Today, the Willingness to Sell Sentiment Factor for upstream nickel salt smelters was 2.1, the purchasing sentiment factor for downstream precursor plants was 2.0, and the sentiment factor for integrated enterprises was 2.1 (historical data can be accessed via the database).

Looking ahead, short-term spot market activity is expected to remain weak, but with nickel prices providing support, the pressure from low-priced supply has relatively eased. Attention should be paid to the sustainability of the rise in nickel prices.