[SMM Analysis] Ternary Cathode Market Remains Subdued

This week, ternary material prices declined rapidly. On the raw material side, nickel sulfate prices remained weak, cobalt sulfate prices dipped again mid-week, while lithium carbonate and lithium hydroxide prices fell at a faster pace in the first half of the week, with their declines slowing and a slight rebound emerging in the latter half, jointly dragging ternary material prices notably lower.

In terms of transactions, some producers had signed orders over the past two weeks, but the decline in lithium salt prices exceeded expectations, leaving them with relatively high inventory costs and facing certain inventory pressure. Meanwhile, a small number of cell makers, having signed orders at elevated prices earlier, now find them hard to accept and have turned to renegotiating part of their orders. Overall, trading sentiment turned cautious, and cathode producers, facing continuous declines in raw material prices, hesitated to quote prices.

On the demand side, the power battery market has remained subdued since the beginning of the month, with end-market demand continuing to weaken and showing no signs of a rebound; cathode makers mainly focused on consuming existing inventories, while consumer electronics demand also stayed flat. With the National Day holiday approaching, some producers have small-batch restocking needs, and raw material purchasing sentiment may pick up next week.