[SMM Analysis] Downstream high coefficient acceptance remains weak, precursor prices hold steady

This week, ternary cathode precursor prices remained stable, with nickel sulphate prices edging up, cobalt sulphate prices declining, and manganese sulphate prices edging down slightly.

Regarding discounts, for August and Q3 orders, some producers showed willingness to raise discounts due to higher costs of sulphate raw materials earlier. For long-term contracts, some producers had already agreed on contracts at the beginning of the year, with coefficients not yet raised, and downstream enterprises also showed weak acceptance of coefficient increases for quarterly contracts, keeping overall stability compared to Q2. For spot orders, due to relatively weak performance of nickel and cobalt salt prices recently, some downstream enterprises sought toll processing of raw materials, and coefficients for August orders are expected to remain stable overall compared to July.

In terms of production, top-tier producers' export orders continued to perform well this month, with production schedules at high levels; China’s top-tier producers' production loads also recovered slightly, but some small and medium-sized producers still had relatively low production schedules due to the off-season.

Looking ahead, sulphate prices have not yet seen a significant rebound, and future new order prices will need to monitor the pace of downstream stockpiling in Q3.