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

This week, ternary precursor prices continued to decline slightly, primarily due to the ongoing minor decrease in nickel sulfate prices. Cobalt sulfate prices remained stable this week, while manganese sulfate prices showed a very limited increase.

In terms of payables, the market has generally shifted away from signing one-year long-term contracts, with monthly or quarterly negotiations becoming the more common practice. For orders in February, as the Chinese Spring Festival holiday approaches, some manufacturers prefer to maintain existing payable levels before the holiday without adjustments, postponing discussions until after the festival. Currently, it appears that payables—whether for long-term contracts or spot contracts—are not expected to change significantly before the holiday, remaining largely consistent with January levels.

On the production side, some small and medium-sized manufacturers plan to complete existing orders before the holiday and then suspend operations. Some leading manufacturers have slowed their production pace due to weakened demand, while others continue to maintain high production intensity to meet export rush orders. Overall, the precursor market is entering the traditional off-season phase in February.