Downside Space for Nickel Sulfate May be Limited

On October 19, the SMM battery-grade nickel sulfate index price was 32,113 yuan/ton, an increase of 64 yuan/ton from last Thursday. The battery-grade nickel sulfate price was 32,000-33,000 yuan/ton, a lower price than last week. On Thursday, the price dropped by 100 yuan/ton, the high price increased by 200 yuan/ton from last Thursday, and the average price increased by 50 yuan/ton from last Thursday. Nickel sulfate prices stabilized this week, and the price range further widened. At present, because the raw material market is still in a tight state and prices are high, nickel salt manufacturers are still worried about raw materials, salt plants are reluctant to sell, and the mentality of raising prices still exists. The current spot circulation is still relatively low. From the demand side, on the electro-nickel side, due to the shrinking price difference between nickel sulfate and first-grade nickel (beans), the current premium of nickel sulfate over first-grade nickel (beans) is 177.27 yuan/ton, and the use of nickel sulfate to produce electro-nickel is a loss, so electro The nickel end's procurement of nickel sulfate tends to stagnate. On the precursor side, there is no obvious shortage of raw materials in October. Due to cost support, the price of nickel sulfate is still at a relatively high level. Since the holiday, precursor companies have a strong wait-and-see mentality towards the nickel sulfate market. Overall market activity is low. As low activity continues this week, some companies have become less willing to support prices and have slightly lowered their quotations, causing the price range to widen again. On the cost side, as mentioned above, the arrival of a small amount of Huafei to the port has alleviated the tight situation of raw materials, but the current tight supply situation has not yet been reversed. The raw material market is hotter than the nickel sulfate market, so the current market raw material coefficient quotation is still relatively low. At high level, the coefficient for LME nickel price is 76-79. Cost-side support remains strong. It is expected that although the rhythmic purchasing node will be entered next week, the purchase of nickel sulfate from the electro-nickel terminal has slowed down and the precursor market is generally weak. The demand for nickel sulfate is limited, but the cost-end support still exists, and the downside space for nickel sulfate may be limited.

Written by SMM Nickel Research, if you have any questions about the nickel market, please don't hesitate to talk with me Fancyli@smm.cn