[SMM Analysis] Mid-year period impacted downstream willingness, nickel sulphate prices dragged down precursor prices

Published: Jul 2, 2026 13:23

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This week, ternary cathode precursor prices weakened. Nickel sulphate and cobalt sulphate prices edged lower this week, while manganese sulphate prices rose slightly.

On the discount side, for July and Q3 orders, due to relatively tight sulphate raw materials, some producers showed willingness to raise discounts. For long-term contracts, some producers' annual contracts were already settled at the beginning of the year, with coefficients not yet raised; for quarterly contracts, downstream players also showed weak acceptance of coefficient increases. For spot orders, nickel and cobalt coefficients for some consumer-type spot orders in June rose, but with nickel and cobalt salt prices relatively weak recently, coefficients for July orders have not been raised further.

Production side, export orders for top-tier producers remained strong this month, with production schedules at relatively high levels. However, some producers experienced a buildup of finished product inventories due to downstream mid-year inventory control, leading to reduced production loads.

Looking ahead, sulphate prices have pulled back overall recently, and future new order prices will depend on the pace of downstream stockpiling in Q3.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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