China's nickel sulfate production stood at 179,800 tonnes in May, or 39,600 tonnes in Ni. content, down 4.57% month on month (MoM) according to Mysteel survey. The production consisted of 0% nickel briquette/powder, 62.66% MHP, 27.3% high-grade nickel matte, and 10.03% secondary nickel by raw material.
The production cut was primarily due to falling demand from ternary precursor companies, which focused on destocking in May, in addition to the short supply of raw materials.
China's nickel sulfate production is likely to fall 2.3% MoM and total 38,700 tonnes in Ni. content in June amidst persistent weakness in the precursor sector. Nevertheless, the nickel consumption in the nickel plate sector is projected to maintain momentum due to moderate profitability. It is likely that around 9,200 tonnes nickel sulfate will be used to produce nickel plate.
Written by Aggie Hu, huchenying@mysteel.com
