Battery-grade nickel sulphate prices declined in the week to Thursday as downstream precursor producers kept external spot purchases limited. Many companies had already secured their main raw-material needs through long-term contracts, leaving less room for additional spot buying and reducing their willingness to accept current offers.
The weaker demand picture was accompanied by continued supply pressure. Some upstream nickel-salt producers planned to reduce operating rates and sell material to clear inventories, while recycling operators continued running at relatively high levels. That combination left the market facing a weak near-term balance between supply and demand, with the effect of any announced production cuts still dependent on whether they are implemented and how much material is actually destocked.
Inventory coverage declined during the week, although the measures are expressed in days rather than physical tonnage. Integrated producers remained at 9 days. The decline therefore shows lower measured coverage, but by itself does not establish stronger consumption because the calculation can also reflect expected usage, stock changes and other assumptions.
Trading sentiment remained cautious. Those readings, together with limited spot procurement, indicate that the inventory reductions did not translate into a broad improvement in buying interest.
Broader nickel-market conditions have also been soft. Producers and cathode makers continued relying mainly on contract volumes and internal stocks, keeping spot sulphate liquidity thin.
The next market test is whether planned upstream operating-rate reductions become visible in actual supply and whether destocking accelerates. Until those changes are confirmed, nickel salt remains exposed to subdued spot demand and available recycled material. Separate production data from a major global producer showed third-quarter own-sourced nickel output of 18,800 tonnes, up 1% from the previous quarter, with nine-month output at 54,600 tonnes, 4% above the comparable 2025 period; its 2026 guidance remained 70,000-80,000 tonnes, around the middle of that range.