Latest Update in the SMM Nickel Market

This week, the recycled scrap market prices fluctuated. In the lithium iron phosphate sector, as time entered mid-to-late December, coupled with the continued losses between lithium chemical prices and black mass production costs, lithium iron phosphate prices dropped slightly.

This Wednesday, the prices of ternary, pure cobalt, and iron-lithium black mass remained basically stable, with most enterprises maintaining low flow rate operations.

This week, the macroeconomic conditions weakened, and the downward expectations for Indonesian nickel ore prices persist, which may lead to a continued decline in nickel prices as costs decrease. The expected trading range for spot nickel prices next week is 120,000-128,000 yuan/mt, while the futures prices are expected to range between 120,000-124,000 yuan/mt.

On December 20, the SMM battery-grade nickel sulphate index price was 26,358 yuan/mt.

According to the latest data from China Customs, China's nickel sulphate imports totaled 3,976 mt (metal content) in November 2024, up 75% MoM but down 4% YoY. Nickel sulphate exports from China were 63 mt (metal content), down 87% MoM and 82% YoY. In October 2024, China's net imports of nickel sulphate were 3,914 mt (metal content), up 121% MoM and 3% YoY.

On December 20, 2024, the "HUAYOUgx" brand refined nickel (electrodeposition process, Ni99.96) produced by Guangxi Huayou New Material Co., Ltd., a subsidiary of Zhejiang Huayou Cobalt Co., Ltd., was registered on the SHFE with a capacity of 30,000 mt.

SMM, December 20th: Recently, the global nickel ore market has experienced some significant changes, particularly in Indonesia and the Philippines, where industry dynamics in these two major nickel ore-producing countries have drawn considerable attention. Firstly, the monthly benchmark price of Indonesian domestic trade laterite nickel ore saw a slight decline in January 2025, down approximately 1.03% MoM compared to December 2024. This trend was mainly influenced by the weak performance of LME nickel prices. Additionally, although the premium price of Indonesian domestic trade laterite nickel ore remained between $15-$16/wmt, a small portion of medium-grade or impure nickel ore has started to trade at a lower price of $14/wmt. This indicates a divergence in demand for nickel ore of different grades in the market and suggests that the CIF price of Indonesian domestic trade laterite nickel ore in January may experience slight fluctuations.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Dec 20, 2024