In May, China's nickel sulfate production reached 240,200 tonnes, or 52,800 tonnes in Ni. Content (based on Mysteel's sample of 60 enterprises), down 5.5% month-on-month. The production comprised 0% nickel briquette/powder, 51.51% MHP, 36.99% high-grade nickel matte, 9.99% secondary nickel by raw material, and NPI accounted for 1.51%. Approximately 12,500 tonnes of nickel sulfate were used for nickel plate production.
On the demand side, downstream demand for electrolytic nickel and electro-winning nickel weakened month-on-month, and the consumption of nickel sulfate decreased accordingly. The increase in orders for ternary precursors was not significant, and companies held ample raw material inventories, so procurement was largely limited to essential needs. On the supply side, feedstocks such as MHP and nickel matte remained persistently tight and high-priced. Profit margins for nickel sulfate production turned negative, forcing non-integrated companies to cut production or maintain production based on sales, leading to a month-on-month decline in production.
Looking ahead to June, China's nickel sulfate production is estimated at 52,800 tonnes, down 0.18% month-on-month.
Written by Cora Ji, jiruyan@mysteel.com
