Raw Material Prices Continued to Rise, and Battery-Grade Nickel Sulphate Prices were Strongly Supported by the Cos

SHANGHAI, Oct 21 (SMM) - The prices of battery-grade nickel sulphate were 39,500-41,000 yuan/mt as of Friday, an increase of 650 yuan/mt on the week. SMM battery-grade nickel sulphate averaged 39,847 yuan/mt as of Friday, an increase of 414 yuan/mt on the week. The supply of battery-grade nickel sulphate was tight, and it was difficult to purchase spot goods in the form of small orders in the market. There were only a few successful transactions this week, with prices ranging from 39,200-41,500 yuan/mt. But the mainstream prices stood at 395,000-40,500 yuan/mt. In addition, the prices of MHP continued to rise this week, with the highest transaction coefficient rising to 75 (against LME prices)/78 (against SMM battery-grade nickel sulphate price). The current quotations further increased compared with this week, and the transaction coefficient offered by some companies in November reached 81 (against LME prices). In this scenario, the MHP market held a bullish outlook. The high-grade nickel matte prices of signing orders for November is also likely to rise. In the short term, nickel sulphate prices will be strongly supported by the cost. The prices of battery-grade nickel sulphate are expected to stand at 39,800-41,000 yuan/mt next week. The market of electroplating-grade nickel sulphate remained stable. The increase in demand was limited, which was mainly contributed by automobile and hardware sector. As the consumption of nickel salt was relatively small, the demand increased little. Electroplating-grade nickel sulphate prices are expected to move between 44,500-47,500 yuan/mt next week.

As mentioned above, raw material prices will continue to rise, based on the spot full cost. The profits of each raw material of battery-grade nickel sulphate ranks: MHP>high-grade nickel matte>nickel briquette. The weekly profit of nickel briquette was -5.4%; high matte nickel 6.1%; MHP 21%. As of last Friday, nickel futures prices fluctuated narrowly, but the overall prices still moved rangebound. This situation is expected to extend next week. The profits of battery-grade nickel sulphate produced by nickel briquette will improve as the prices of finished products rises.