This week, the MHP market was tight overall, with nickel and cobalt coefficients fluctuating at highs. On the supply side, sulfur supply shortages caused some producers to cut production, MHP supply declined, and transaction coefficients edged up slightly. On the demand side, downstream nickel salt prices weakened, the risk of losses persisted, and nickel salt smelters were relatively less accepting of high-priced MHP. However, with some recovery in downstream ternary demand, some producers had rigid purchase needs, supporting the strength of MHP nickel coefficients. Driven by tight supply-demand expectations, the market is expected to hold up well in the short term. The high-grade nickel matte market was also in a pattern of weak supply and demand. Currently, high-grade nickel matte has a clear economic advantage over MHP. However, on the supply side, mainstream suppliers have completed long-term order signing, leaving limited available spot supply. On the demand side, actual consumption capacity was insufficient due to limitations in downstream production line compatibility. Overall, purchase sentiment was weak, trading activity was low, and coefficients remained stable. The international sulfur market saw a shift in supply landscape, with geopolitical premiums gradually being cleared. The US and Iran signed and enacted a ceasefire memorandum on June 17, the Strait of Hormuz is expected to be gradually unblocked, the US has started lifting the sea blockade, and Iran will complete mine clearance within 30 days. However, many shipping enterprises have temporarily suspended the resumption of routes, making navigation recovery a gradual process. Coupled with Turkey's export ban extended to end-September and Russia's ban extended to June 30, short-term supply disruptions persist. As the strait unblocking progresses, sulfur prices are expected to gradually come under pressure and swing wildly at highs in the short term. Going forward, attention should be paid to mine clearance progress, the pace of shipping recovery, and the direction of the final agreement within 60 days. On the nickel price front, as the US-Iran reconciliation gradually progressed this week, market rate hike expectations faded, and non-ferrous metals generally rebounded. Against the backdrop of stable MHP payables and high-grade nickel matte coefficients, the absolute prices of MHP and high-grade nickel matte rebounded as nickel prices rose. Additionally, MHP cobalt prices and refined cobalt prices also rebounded. Overall, the intermediate product market is expected to hold up well in the short term. Cost side, the MHP raw material market remained tight. Under the combined influence of production cuts of intermediates caused by sulfur shortage and just-in-time procurement of ternary materials downstream, MHP payables fluctuated at highs this week. Nickel prices, the US-Iran situation released signals of reconciliation, market rate-hike expectations subsided somewhat, and the previously oversold nickel prices rebounded this week. Overall for the week, nickel prices rebounded, MHP payables held steady, and the spot cost of nickel salt production rose slightly WoW.

Mid-Month Market Transactions Sluggish, Nickel Salt Prices Slightly Declined This Week As of this Thursday, the SMM average price of battery-grade nickel sulphate declined. Demand side, with it being mid-month and approaching the mid-report period, the downstream sector primarily consumed inventory, stockpiling sentiment was weak, and acceptance of nickel salt prices was relatively low. Supply side, as MHP payables and auxiliary material prices remained high, some producers faced elevated immediate costs, and nickel salt quoted prices stayed high. Looking ahead, expectations of tight nickel sulphate raw material supply have not yet improved, and attention must be paid to the cost support strength of nickel prices and intermediate products for nickel salt prices. Inventory side, this week the upstream nickel salt smelter inventory index declined from 8.7 days to 8.5 days, the downstream precursor plant inventory index slid from 11.2 days to 10.9 days, and the integrated enterprise inventory index rose from 6.8 days to 7.0 days. In terms of buying and selling strength, this week the upstream nickel salt smelter Willingness to Sell Sentiment Factor remained at 1.8, the downstream precursor plant procurement sentiment factor remained at 2.5, and the integrated enterprise sentiment factor remained at 2.4. (Historical data can be queried in the database.) Nickel prices rebounded somewhat, and nickel salt costs recovered. From the cost side, MHP raw material market circulation was tight. Affected by the combined impact of intermediate product production cuts caused by sulphur shortages and downstream ternary just-in-time procurement, MHP payables fluctuated at highs this week. On the nickel price front, the US-Iran situation released signals of reconciliation, market expectations of interest rate hikes faded somewhat, and the previously oversold nickel prices rebounded somewhat this week. Overall, for the week, nickel prices rebounded, MHP payables remained stable, and the immediate cost of nickel salt production rose WoW.

On June 18, the average price of SMM battery-grade nickel sulphate edged down slightly.

On June 17, the SMM battery-grade nickel sulphate average price remained stable.

While upstream MHP payables stayed high, auxiliary material prices such as sulphur and sulphuric acid continued to climb, and downstream ternary production schedules remained at high levels, the performance of battery-grade nickel sulphate prices was not optimistic. SMM believes this was driven by multiple factors, including weakening cost support, front-loaded downstream stockpiling, increased import supplementation, and higher volumes of nickel sulphate converted from refined nickel.

On June 15, the SMM battery-grade nickel sulphate average price slightly rose.

Spot circulation was limited this week, with MHP and high-grade nickel matte payables fluctuating at highs.

As of this Thursday, SMM battery-grade nickel sulphate average price declined slightly. Demand side, the regular procurement period passed, coupled with the approaching semi-annual reports, downstream purchasing sentiment was overall weak, and acceptance of nickel salt prices was low; supply side, due to MHP payables and auxiliary material prices still staying at high levels, some producers had high spot costs, and nickel salt offers still stayed high. However, with nickel prices falling significantly, overall cost pressure improved somewhat. Looking ahead, the expectation of tight nickel sulphate raw materials has not improved, and attention should be paid to the cost support from nickel prices and intermediate products for nickel salt prices.

On June 11, the SMM battery-grade nickel sulphate average price edged lower.

On June 10, the SMM battery-grade nickel sulphate average price edged down.