While nickel briquette started to become a viable alternative as a precursor of nickel sulfate for Chinese battery raw materials producers in early 2021, their enthusiasm for the product appears to have waned in recent weeks, resulting in a less active spot market.
Previously, a sharp decrease in nickel briquette inventory levels at London Metal Exchange warehouses had Chinese market participants worried that there would be a shortfall that would exacerbate the tight supply of battery raw materials, particularly with mixed hydroxide precipitate (MHP) experiencing a sustained shortage."We often see an inverse relationship between LME prices and premiums, where premiums can pick up when the LME comes down, and vice versa... and the high levels [of LME nickel price] we've seen in July and August could well have contributed to the weak performance of nickel briquette...