China's nickel sulfate production totaled 146,600 tonnes in December 2023, or 32,200 tonnes in Ni content, a monthly drop of 6.41%, based on Mysteel new survey samples. The production consists of 0% nickel briquette and nickel powder, 60.21% nickel hydrometallurgical intermediates, 29.03% nickel matte, and 10.2% secondary nickel.
The nickel sulfate production cut in December 2023 was primarily attributed to falling demand as a result of ternary precursor plants constantly reducing the production. Though producing nickel plate using nickel sulfate was profitable, the boost to the total demand was insignificant. As such, the nickel sulfate smelters actively reduced the production in light of oversupply and falling prices.
The production is estimated to fall 7.55% month on month at 29,800 tonnes in Ni. content in January 2024 as some smelters plan not to sell until after Chinese New Year holiday after finishing building stocks, which begins in February.
Source: Mysteel
Written by Aggie Hu, huchenying@mysteel.com