[SMM Analysis] Ternary cathode producers still hold the mentality of rushing to buy amid continuous price rise and holding back amid price downturn.

This week, ternary cathode material prices continued their downward trend. On the raw material side, influenced by the international situation, the non-ferrous metals sector experienced a significant correction. The trading price of lithium carbonate fell notably due to weaker futures, lithium hydroxide declined in tandem, nickel sulphate continued to drop, cobalt sulphate prices held steady, while manganese sulphate rose slightly, collectively exerting pressure on ternary cathode material prices. Although current raw material prices are at a cyclical low, market sentiment has not improved significantly. Producer enthusiasm for inquiries and quotations weakened, and trading volume did not expand markedly. The main reasons were that some producers still held the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn, some stockpiling had already occurred during last week's price correction, pre-holiday procurement demand was limited, and most are currently adopting a wait-and-see approach.

Regarding discounts, February discounts were basically flat compared to the previous month. Nearing the Chinese New Year, some producers tended to maintain existing discount levels before the holiday and postpone negotiations until after the holiday, resulting in limited recent discount adjustments. Compared to last year's model dominated by long-term agreements, more producers now opt to negotiate order terms on a monthly or quarterly basis.

On the production side, as the Chinese New Year holiday approaches, producers generally slowed their production pace, with some enterprises having started holidays early or conducting routine maintenance. Downstream purchase willingness was also relatively mediocre, and overall shipments narrowed.