The nickel sulphate market remained sluggish during the National Day holiday, with transactions at a standstill and prices expected to stay under pressure. On the cost side, nickel prices dropped sharply during the holiday due to high oil prices and elevated US Treasury yields, which weakened support for nickel sulphate. Supply-wise, production in October is expected to rise slightly but remain stable, with some producers reducing operating rates due to weak downstream demand. However, the widening price gap between nickel and nickel sulphate has kept some producers from cutting back production. Demand remains weak, with domestic orders falling in September and only a slight recovery in October. Export orders are still high, but uncertainty over export controls in early November could limit further growth. Despite a slight improvement in downstream demand, the market is expected to remain in surplus, with prices continuing to face pressure from weakened cost support.
The market's overall outlook remains cautious, with supply outpacing demand and limited recovery in consumer interest. While precursor production schedules are expected to improve slightly, raw material stockpiles from September mean immediate purchasing impacts are unlikely. The situation highlights ongoing challenges in balancing supply and demand, with prices likely to remain constrained by weak cost support and uncertain export policies.
With production schedules and raw material stockpiles set to influence future trends, the nickel sulphate market remains in a state of cautious equilibrium, facing ongoing challenges in maintaining stable pricing and meeting demand.