According to Mysteel new survey sample, China's nickel sulfate production was 155,000 tonnes in physical content, or 34,100 tonnes in Ni. content in March, rising 16.54% month on month (MoM). The production consisted of 0.44% nickel briquette/powder, 68.28% MHP, 23.58% high-grade nickel matte, and 9.19% secondary nickel by raw material.
The production growth was powered by rising end-market demand, most of which was contributed by integrated producers with cost advantages. Some producers purchased high-priced MHP due to tight supply in order to maintain the production, leading to poor profitability. In this case, some producers purchased nickel briquette/powder to control the cost. Nevertheless, the secondary nickel-based nickel sulfate producers reduced the production for losses.
It is expected that the nickel sulfate production will grow further by 9.19% MoM at 37,200 tonnes in Ni. content in April.
Written by Aggie Hu, huchenying@mysteel.com