[SMM Analysis] Domestic Ternary Cathode Material Orders Grew Steadily in August

This week, ternary material prices pulled back from their highs. On the raw material side, nickel sulfate prices weakened again, cobalt sulfate prices declined at a slower pace and gradually stabilized, while lithium carbonate and lithium hydroxide prices corrected for consecutive sessions after surging early in the week, jointly dragging ternary material prices lower.

In terms of transactions, as raw material prices fluctuated sharply, cell makers remained reluctant to restock, and market transactions stayed relatively subdued, mainly centering on the execution of existing orders.

On the demand side, some cell makers in the domestic power battery market slowed their pickup pace, mainly because orders from automakers fell short of expectations; overseas orders remained at relatively high levels and are expected to keep improving going forward. The consumer electronics market remained flat recently, with no signs of improvement yet.

In terms of production scheduling, domestic ternary cathode orders grew steadily in August. However, demand momentum in the power battery market appears somewhat insufficient for September, and given that August's production base is expected to hit a record high, the incremental growth in September is projected to be relatively limited.