China nickel sulphate production shrank 3.9% in May

SHANGHAI, Jun 8 (SMM) – China’s output of nickel sulphate extended its decline in May, as weak demand, existing inventories and the ongoing price war forced some producers to trim or suspend production.

An SMM survey showed that 42,800 mt of nickel sulphate, including 35,800 mt of battery-grade materials and 7,000 mt of electroplating-grade materials, was produced in China last month. May’s output translated to 9,400 mt in Ni content, down 3.91% from a month earlier and 29.25% from a year earlier.

Last month, China’s precursor producers began to feel the impact from the Covid-19 containment measures put in place in late March, and foreign orders reduced.

A rally in nickel prices lifted costs for nickel sulphate production last month.

The nickel sulphate industry, meanwhile, was also grappling with a fierce price war which send traded prices of battery-grade materials towards, or even below, costs, and prompted some producers to halt or curtail production, or switch to other nickel salts.

China’s output of nickel sulphate is expected to rebound 9.59% from May to 10,300 mt Ni in June, on the back of the resumption of some producers.