Chinese nickel sulphate output stood at 137,100 mt in physical content or 30,200 mt in metal content, down 18.29% on the month and 39.43% on the year. The following reasons accounted for the sharp MoM drop in domestic nickel sulphate production in April.
First, the demand recovery of ternary precursor manufacturers did not expectations, and nickel sulphate producers barely accepted the low prices. Therefore, except for long-term orders, there were few trades under small orders.
Second, in April, upstream raw material enterprises of nickel sulphate raised prices and the profitability of nickel sulphate with then processing fees was relatively poor, driving some nickel sulphate enterprises into serious losses and to reduce production. Third, some nickel sulphate liquid producers cut output significantly due to ballooning inventory.
In May, according to SMM's analysis, the production schedule of downstream ternary manufacturers is not expected to improve significantly compared with April. And some enterprises that suspended production have no plan to resume production in May. Nickel sulphate output is estimated at 31,200 mt in Ni content in May, flat from the prior month.
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