In August 2026, China's nickel sulfate production totaled 222,200 tonnes in physical terms and about 48,900 tonnes in metal content, based on a new sample of 60 producers, down 4.87% month-on-month. Of this, about 7,700 tonnes of nickel metal were used to produce nickel plates. In terms of feedstock mix, nickel briquettes and nickel powder accounted for zero, while nickel intermediates made up 47.05%, high-grade nickel matte 41.22%, recycled nickel 10.1%, and NPI 1.64%. For September, nickel sulfate production is estimated at about 50,500 tonnes in metal content, up 3.21% month-on-month, with nickel plate production using about 7,700 tonnes.
The output fell short of expectations in August mainly due to dual pressures from costs and demand. On the cost side, persistently high MHP raw material prices squeezed refining margins, dampening producers' enthusiasm. On the demand side, weakening demand from the electrowinning nickel sector meant that only about 7,700 tonnes of nickel metal were used for nickel plate production, sharply reducing nickel sulfate consumption. Meanwhile, the new energy sector was in a traditional off-season, with ternary precursor purchases limited to essential needs and transactions remaining sluggish.
Looking ahead to September, output growth is expected to come from seasonal recovery in the ternary precursor sector and restarts after maintenance at some plants. However, with lithium iron phosphate continuing to erode ternary cathode active materials' market share, the room for a nickel sulfate production rebound is likely to remain limited.
Source: Mysteel
Written by Aggie Hu, huchenying@mysteel.com
