[SMM Analysis] Approaching the Chinese New Year, the ternary cathode market performed sluggishly this week.

This week, ternary cathode material prices rose slightly. On the raw material side, prices for nickel sulphate, cobalt sulphate, and manganese sulphate remained basically stable, while lithium carbonate and lithium hydroxide saw a rebound, driving a slight increase in ternary cathode material prices. Due to the approaching Chinese New Year holiday, purchasing sentiment among downstream battery cell manufacturers was low, with relatively few inquiries, and cathode plants' willingness to sell was generally mediocre overall.

In terms of discounts, market discount levels this week were basically flat compared to last week. As the Chinese New Year approaches, some producers tend to maintain existing discounts before the holiday and postpone discussions until after the holiday, resulting in limited discount adjustments recently. Compared to last year's prevalent model of signing long-term agreements, more enterprises now opt for monthly or quarterly order negotiations.

On the production side, with the Chinese New Year holiday approaching, ternary cathode material enterprises generally slowed down their production pace, with some producers having started holidays early or conducting routine maintenance. It is expected that after the holiday, as demand and production gradually recover, the ternary market will return to active conditions.