[SMM Analysis] Ternary Cathode Precursor Market Enters Traditional Off-Season in February

This week, ternary cathode precursor prices continued to drop back slightly, mainly affected by the continued slight decline in nickel sulphate prices. Cobalt sulphate prices remained stable this week, while manganese sulphate prices rose, but the increase was very limited. In terms of discounts, it has become more common for the market to no longer sign one-year long-term contracts, with negotiations now typically conducted on a monthly or quarterly basis. For February orders, due to the approaching Chinese New Year holiday, some producers prefer to maintain existing discounts without adjustments before the holiday, with discussions to be resumed after the holiday. Currently, it appears that discounts, whether for long-term contracts or spot orders, are not expected to change significantly before the holiday, remaining largely in line with January levels.

On the production side, some small and medium-sized producers plan to suspend operations after completing orders on hand before the holiday; some leading producers have slowed down their production pace due to a pullback in demand; meanwhile, some producers continue to maintain high production intensity due to an export rush. Overall, the precursor market is expected to enter a traditional off-season phase in February.