China's nickel sulfate production stood at 178,000 tonnes in July, or 39,200 tonnes in Ni. content, up 0.33% month on month (MoM) according to Mysteel survey. The production comprised 0% nickel briquette/powder, 56.05% MHP, 34.69% high-grade nickel matte, and 9.1% secondary nickel by raw material.
Despite reduced output from some nickel sulfate producers due to limited profits, the increase in nickel sulfate production primarily stemmed from rising demand in China. Additionally, integrated enterprises with a raw material advantage increased nickel plate production after earlier hedging, while some companies expanded capacity by introducing new lines to produce nickel plates, resulting in a significant rise in nickel plate output.
China's nickel sulfate production is likely to fall 0.62% MoM and total 38,900 tonnes in Ni. content in August, and it is expected that around 12,300 tonnes of nickel sulfate will be used to produce nickel plates. Although nickel intermediate raw material prices remain firm, spot nickel sulfate producers see little profit growth. Combined with limited demand increases for pure nickel, nickel sulfate supply is unlikely to increase significantly in the third quarter.
Written by Cora Ji, jiruyan@mysteel.com
