Nickel sulphate prices were stable in the week ending April 18. While the supply tightness in the market has gradually eased, it has not yet been fully reversed.
Producers of nickel sulphate are currently operating around their cost line. On the cost side, the discount coefficient for mixed hydroxide precipitate (MHP) has loosened, while refined nickel prices have held firm.
With limited production growth expected from hydrometallurgy projects in Indonesia, the downside room for the MHP discount coefficient is likely to be limited. This means that the firm nickel prices will continue to provide solid cost support to nickel sulphate prices, preventing them from falling significantly.
In other words, the news suggests that nickel sulphate prices are expected to barely fall, if at all, in the near term. The stable cost environment, with limited downside pressure on MHP discounts and firm refined nickel prices, is expected to keep nickel sulphate prices relatively stable going forward.
