Xi'en New Materials to suspend nickel sulfate production
2023-04-28 10:17:25 [Print]
BEIJING (Asian Metal) 28 Apr 23 - Chizhou Xi'en New Materials Technology Co., Ltd., one of major battery-grade nickel sulfate Ni 22%min Co 0.4%max producers in East China, plans to suspend production at the end of April, expecting to produce about 450t this month.
"As demand for battery grade nickel sulfate keep shrinking, we lowered our operating rate in late April in order to prevent stocks from growing and plan to suspend production at the end of April. Our nickel sulfate production is expected to be only around 450t this month, compared with around 2,800t in March," a source from the company said, adding that at present they are not sure when to resume operation as it depends upon market demand status.
Based on the annual production capacity of 40,000t, the company produced about 31,500t in 2022 and around 5,800t in Q1 2023, holding inventory of around 1,100t now.
This Thursday, mainstream prices for Chinese battery grade nickel sulfate Ni 22%min Co 0.4%max stood at RMB31,500-32,000/t (USD4,557-4,629/t) delivered D/A, down by RMB200/t (USD28.93/kg) from Tuesday. Given continuously shrinking demand for battery grade nickel sulfate, producers are facing great sales pressure, and insiders forecast that prices for Chinese battery grade nickel sulfate would decline in the week to come.
"As demand for battery grade nickel sulfate keep shrinking, we lowered our operating rate in late April in order to prevent stocks from growing and plan to suspend production at the end of April. Our nickel sulfate production is expected to be only around 450t this month, compared with around 2,800t in March," a source from the company said, adding that at present they are not sure when to resume operation as it depends upon market demand status.
Based on the annual production capacity of 40,000t, the company produced about 31,500t in 2022 and around 5,800t in Q1 2023, holding inventory of around 1,100t now.
This Thursday, mainstream prices for Chinese battery grade nickel sulfate Ni 22%min Co 0.4%max stood at RMB31,500-32,000/t (USD4,557-4,629/t) delivered D/A, down by RMB200/t (USD28.93/kg) from Tuesday. Given continuously shrinking demand for battery grade nickel sulfate, producers are facing great sales pressure, and insiders forecast that prices for Chinese battery grade nickel sulfate would decline in the week to come.
