FOCUS: Will nickel briquette lose appeal as feedstock with Chinese nickel sulfate price declining?

Nickel briquette has steadily become a more favored choice of feedstock for Chinese battery-grade nickel sulfate producers in recent months, resulting in a notable pick-up in spot trading activity for the former.

But recent declines in the Chinese nickel sulfate price have raised questions among market participants about whether this trend will continue.
Fastmarkets examines the major factors behind the robust demand for nickel briquette, and whether it will lose its appeal as a feedstock while the Chinese nickel sulfate price is weakening.
Robust demand, tight MHP supply make nickel briquette a popular choice
Chinese nickel sulfate producers mainly use mixed hydroxide precipitate (MHP), nickel briquette, nickel powders, and recycled materials as feedstock for their production of battery-grade nickel sulfate used in batteries for electric vehicles (EVs).
Of these, MHP is the most popular raw material due mainly to its relatively cheaper price.

Spot demand for nickel briquette had been very quiet for much of the past year, with limited spot buying interest heard. But this changed dramatically late last year following a strong recovery in China's automotive market in the aftermath...

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