Some Downstream Producers Started Just-in-Time Procurement, Nickel Salt Prices Rose Significantly This Week
As of Friday this week, the SMM battery-grade nickel sulphate index price was 31,586 yuan/mt, and the quotation range for battery-grade nickel sulphate was 31,000-33,000 yuan/mt, with the average price rebounding noticeably WoW.
Demand side, after destocking last month, some producers began stockpiling this week. However, due to the significant impact of nickel prices on nickel sulphate prices, most transactions this week were just-in-time procurement. Supply side, nickel prices climbed further this week, intensifying producers' concerns about rising raw material costs. Some producers showed a strong willingness to hold prices firm, while others stopped offering quotations, leading to a relative decrease in nickel sulphate sales in the market. Looking ahead, nickel prices are expected to fluctuate upward, supporting the continuous increase in nickel salt costs, but subsequent nickel price trends still need to be monitored.
Inventory side, the upstream nickel salt smelter inventory index rose from 4.9 days to 5.2 days this week, while the downstream precursor plant inventory index increased from 7.1 days to 9.1 days. Some producers engaged in restocking recently, and the integrated enterprise inventory index rose from 7 days to 7.3 days. Buying and selling strength side, the upstream nickel salt smelter's willingness to sell sentiment factor remained at 2.0 this week, while the downstream precursor plant's procurement sentiment factor increased from 2.8 to 2.9. Trading sentiment rebounded somewhat by month-end, and the integrated enterprise sentiment factor remained at 2.4. (Historical data can be queried in the database.)
Nickel Prices Continued to Rise This Week, Nickel Salt Production Costs Increased Significantly
Cost side, MHP raw material market circulation was tight, and MHP payables remained high this week. Nickel prices side, nickel prices rose continuously this week stimulated by potential adjustments to Indonesia's nickel ore policy. Although there was a mid-week pullback, prices still increased WoW. Overall, nickel prices rose further WoW, while MHP payables held steady, driving a significant increase in the immediate production cost of nickel salts compared to last week.
