In February, China's physical nickel sulfate production reached 199,500 tonnes, or 43,900 tonnes in Ni. content, marking a month-on-month decrease of 16.2%. The production comprised 0% nickel briquette/powder, 54.33% MHP, 36.21% high-grade nickel matte, 8.42% secondary nickel by raw material, and 1.59% NPI. This includes approximately 13,700 tonnes of nickel sulfate used to produce nickel plate.
Source: Mysteel
The decline in China's nickel sulfate production in February was primarily attributed to two concurrent factors: first, reduced working days due to the Chinese New Year holiday and maintenance shutdowns at some smelters; second, a significant drop in downstream ternary precursor demand, which dampened production enthusiasm among nickel salt producers.
China's nickel sulfate production in March is estimated at 53,100 tonnes in Ni. content, up 21.06% month-on-month. As the holiday ends and downstream enterprises fully resume operations, procurement demand is gradually recovering. Meanwhile, the policy effect of tightened nickel ore RKAB quotas in Indonesia continues to unfold, and there is a slight increase in demand for electroplated nickel and electrolytic nickel between February and March, and a notable recovery in downstream ternary material demand in March. Driven by high raw material costs and expectations of post-holiday restocking, smelters' willingness to produce has strengthened, which leads to a significant projected month-on-month increase in March production.
Written by Cora Ji, jiruyan@mysteel.com
