Battery-grade nickel sulphate prices declined on October 28 as downstream buyers limited spot-market purchasing and showed little interest in building inventories. The move came amid weaker nickel prices, uncertainty over possible production cuts and expectations of softer end-use demand.
Lower nickel prices reduced immediate production costs for nickel sulphate. At the same time, some producers were carrying elevated inventories and seeking production cuts to reduce those stocks, but supply pressure remained significant while the timing and scale of any cuts were uncertain.
Downstream precursor plants showed relatively low acceptance of nickel salt prices and weak willingness to build spot-order inventories.
The broader nickel market was also dealing with cautious physical demand. Recent discussions about possible Indonesian production cuts had not produced a clear improvement in physical nickel markets, while high inventories and subdued buying interest continued to weigh on related nickel products.
Glencore reported third-quarter own-sourced nickel production of 18,800 metric tons, up 1% from the second quarter, and nine-month production of 54,600 metric tons, up 4% from the comparable period. The company kept its 2026 nickel guidance at 70,000 to 80,000 metric tons and expected output near the middle of that range.
In the short term, spot trading is expected to remain weak and nickel sulphate prices to stay under pressure. The immediate direction will depend on whether production cuts materially reduce inventories and whether downstream buyers return to the market; neither change had been established by October 28.