【SMM analysis】Weekly Wet Process Recycling Market Update: Sluggish Salt Prices, Margin Pressures Drive Cautious Trade

SMM April 27 (SMM) -Recycling Weekly Update:

Supply Side: This week saw slight declines in lithium salts, nickel salts, and cobalt salts. The recovery rate coefficients for ternary and lithium cobalt oxide black powder remained stable. Taking ternary black powder as an example: current recovery coefficients for ternary cathode black powder stand at 75-78%, while those for ternary battery black powder range between 72-75%. Suppliers including crushing plants and traders have lowered their psychological selling prices following salt price drops. However, some crushing plants continue withholding stocks due to current processing margins remaining below breakeven levels, resulting in quieter market transactions compared to March.

Demand Side: Most wet-process manufacturers maintained minimal procurement of black powder amid continuous declines in nickel-cobalt-lithium salt prices. With persistent market pessimism towards lithium salt prices, plants currently maintain only about one month's safety stock of raw materials.

Cost Perspective: Except for leading integrated wet-process manufacturers, most operators remain below breakeven levels. While crushing plant margins slightly outperform wet-process operations, recent declines in electrolytic copper prices have caused continued margin inversion in the crushing sector.