In July 2026, China's nickel sulfate production reached 233,600 tonnes, equivalent to approximately 51,400 tonnes of nickel metal (based on 60 sampled companies), down 0.4% month-on-month. Of this, approximately 11,200 tonnes of nickel metal were used in the production of nickel plates derived from nickel sulfate. The July production consisted of 0% nickel briquette/powder, 49.1% MHP, 39.48% nickel matte, 9.86% recycled nickel, and 1.56% NPI by raw material. For August 2026, China's nickel sulfate production is projected at around 52,700 tonnes of nickel metal, up 2.63% month-on-month, with about 11,800 tonnes used for nickel plate production.
The month-on-month contraction in July was mainly driven by cost pressures, with high MHP prices leaving margins negative, compounded by the traditional off-season for stainless steel consumption. The feedstock mix remained stable, with intermediates taking the dominant share. The decline in nickel plate production reflected weaker demand from the electrowinning nickel segment.
Looking ahead to August, the production is expected to pick up modestly, supported by seasonal recovery in new energy procurement and production restarts after maintenance. However, with LFP battery cathode continuing to gain share over ternary cathode materials, the scope for a sustained rebound in nickel sulfate output remains limited.
Source: Mysteel
Written by Aggie Hu, huchenying@mysteel.com
