News summary
The growth of refined nickel production capacity is higher than that of consumption, the excess is gradually realized, and the price is close to the marginal cost. Supply pressure continues in the short term, and market demand has not improved significantly.
Newsletter text
[Oversupply in refined nickel market drops to marginal cost]
Recently, the market price of refined nickel has fluctuated, mainly due to the gradual release of production capacity, which has led to supply growth higher than consumption. It is reported that as refined nickel increases productioncryptogamespaceThe raw materials of the company mainly come from nickel intermediates, and the supply of nickel intermediates first meets the needs of the ternary battery industry chain. However, due to the slowdown in the growth rate of ternary batteries, Indonesia's excess nickel intermediates was released to refined nickel, resulting in oversupply in the market.
Although excess refined nickel has caused prices to fall near marginal cost, reducing room for further decline, this does not mean that prices will inevitably rebound. At present, in the short term, there is still no evidence that the demand for the battery chain can absorb excessive nickel intermediates, and the relative profits of high-quality nickel matte have further expanded. Therefore, supply pressure is still in place and the pattern remains weak.