[SMM Analysis] Ternary Cathode Transaction Sentiment Slightly More Active This Week

This week, ternary cathode material prices exhibited a range-bound trend with no clear upward or downward direction. From the raw material perspective, prices of nickel sulfate, cobalt sulfate, and manganese sulfate saw limited changes, while ternary cathode material price movements remained primarily influenced by fluctuations in lithium carbonate and lithium hydroxide prices. Due to supply-side news flows and capital market volatility, lithium salt spot prices remained range-bound, with the future trend still uncertain. Further guidance from overseas supply-side developments remains to be monitored.

In terms of transactions, most second-quarter orders in the domestic EV market have been signed sequentially. While some manufacturers saw modest upward adjustments in payables, overall market changes remained limited. On average, no significant differences in payables were observed between the second and first quarters. In the consumer and e-mobility markets, some battery cell manufacturers conducted batch price-linked restocking during this week's period of low-range lithium salt price fluctuations, resulting in slightly more active transaction activity compared to the previous week.

On the demand side, the domestic EV market showed modest recovery, though the increase was limited, and manufacturers remain cautious about future production schedules. Demand in the e-mobility market remained relatively subdued, with production still largely based on sales orders and need-based procurement. On overseas orders, after peaking in March driven by the export rush ahead of policy changes, April is expected to see a certain degree of decline. Overall, April production schedules are projected to see a modest month-on-month decrease.