[SMM Nickel Sulphate Daily Review] March 9: Raw Material Uncertainty Continued, Nickel Salt Prices Held Steady

On March 9, SMM’s average price for battery-grade nickel sulphate was flat WoW versus last Friday.

Cost side, the Middle East situation continued to disrupt bulk commodity prices. Today, nickel prices opened lower and then rebounded slightly, but the spot production cost of nickel sulphate remained at a low level MoM. Supply side, after the holiday, nickel salt smelters’ willingness to ship improved, and offers were lifted somewhat on expectations of potential cost increases driven by raw material uncertainties. Demand side, some producers had begun making price inquiries and purchasing sentiment improved, but as cost pass-through to downstream progressed slowly, producers remained largely on the sidelines regarding high-priced nickel salts. Today, the upstream nickel salt smelters’ Willingness to Sell Sentiment Factor was 1.8, the downstream precursor plants’ purchasing sentiment factor was 2.7, and the integrated enterprises’ sentiment factor was 2.3 (historical data is available via the database).

Looking ahead, market buying and selling sentiment in March is expected to rebound. Attention should be paid to nickel prices and the extent to which intermediate product supply supports nickel sulphate prices from the cost side.

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