Weak downstream demand leads to a decline in nickel salt prices
As of Thursday this week, the SMM index price for battery-grade nickel sulphate was 27,705 yuan/mt, with a quotation range of 27,700 to 28,130 yuan/mt for battery-grade nickel sulphate, and the average price declined WoW.
Cost side, this week, LME nickel prices showed a downward trend, driving down the production costs of nickel salts. Demand side, after the industry experienced destocking in May, the production schedules of some precursor producers increased MoM in June, but overall market demand remained weak. Affected by the backlog of raw material inventory due to sluggish demand in May and insufficient downstream purchase willingness, nickel salt enterprises' enthusiasm for inquiries and transactions significantly weakened this week. Supply side, the current order signing situation of nickel salt enterprises is poor, and some enterprises are expected to implement certain production cuts in June. Due to weak downstream demand and falling costs, some nickel salt enterprises have shown signs of loosening their quotations.
Looking ahead, considering the continued mediocre downstream demand and the weakened bargaining power of some buyers, it is expected that nickel salt prices may further weaken in the short term.
