In June, China's physical output of nickel sulfate reached 234,500 tonnes, or 52,600 tonnes in Ni. content (based on Mysteel's sample of 60 enterprises), down 2.36% month-on-month. Approximately 11,700 tonnes of nickel sulfate were used to produce nickel plate. The production comprised 0% nickel briquette/powder, 47.89% MHP, 33.43% high-grade nickel matte, 11.1% secondary nickel by raw material, and NPI accounted for 1.55%.
The June decline stemmed from weakening downstream demand for electro-winning nickel and sluggish procurement of ternary precursors, coupled with tight supply and high prices of MHP raw materials, which led to negative profit margins for nickel sulfate production.
For July, China's nickel sulfate production is estimated at approximately 50,800 tonnes, down 1.59% month-on-month, with about 10,800 tonnes of nickel sulfate expected to be used for nickel plate production. The July decline is mainly attributed to the traditional off-season for stainless steel consumption, while limited procurement growth in the new energy sector is insufficient to offset the demand drop. The underlying cause remains the dual pressure of high costs and weak demand, with smelting margins showing no significant improvement.
Written by Cora Ji, jiruyan@mysteel.com
