According to Mining News Pro - Buying appetite remained low with buyers resisting offers, while sellers were holding onto their inventory amid squeezed margins, resulting in limited spot trading. An isolated deal was heard at 38,000 yuan ($5,454) per tonne, but most participants did not see the market at that level yet.
As a result, Fastmarkets’ weekly price assessment for nickel sulfate, min 21%, max 22.5%; cobalt 10ppm max, exw China was 39,000-40,000 yuan per tonne on December 9, down by 500 yuan per tonne from 39,500-40,500 yuan per tonne on December 2.
Despite elevated nickel prices on paper and high input costs for refineries, softening demand from downstream precursor plants continued to weigh down the nickel sulfate market. Battery makers in China initially started to cut production in November in anticipation of lower demand for their products ahead of the removal of subsidies for electric vehicles (EVs) at the end of this year.
China’s EV subsidy program comes to an end on December 31, 2022, and vehicles purchased after this date will no longer qualify for subsidies.
“The EVs assembled after November 15 were scheduled for sale next year, meaning a complete cancellation of subsidies for buyers then, which largely explains the lackluster demand and declining prices [for nickel sulfate] now,” a producer source said.
Market sources also cited the high prices for nickel as another reason for the weaker demand for nickel sulfate.
The three-month official nickel price on the LME closed at $30,000-30,050 per tonne on December 9, an 11.5% jump from $26,900-26,950 per tonne at the start of the month and an “unbearable” level for consumers, according to market sources.
