[SMM Analysis] Weak Trading Sentiment but Strong Cost Support, Ternary Cathode Precursor Prices Edged Up

Published: Mar 26, 2026 11:54

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This week, ternary cathode precursor prices increased slightly, while sulphate prices were all flat today.

Discounts, for April and Q2 orders, some producers were willing to raise discounts due to large fluctuations in raw material prices. Long-term contracts, some producers recently finalized long-term agreements. As downstream demand was relatively weak, discount increases were expected to be limited, but there was some room for negotiation on processing fees. Spot orders, the Ni-Co-Mn coefficient for spot orders rose this month, and with current downstream procurement sentiment weak, further upside room was expected to be limited.

Production, leading producers in China and those with relatively large export orders still maintained high operating intensity.

Looking ahead, recent sulphate costs provided strong support, but downstream acceptance remained subject to observation of downstream demand in Q2.

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