[SMM Analysis] Ternary Cathode Production Schedule Declines Significantly in September

This week, ternary cathode material prices fell sharply overall. From the raw material side, nickel sulphate and cobalt sulphate continued to grind lower due to weak downstream purchasing sentiment, while lithium carbonate and lithium hydroxide saw even more pronounced declines.

In terms of transactions, given the large price drops with no signs of stopping, coupled with the approaching holiday, most producers have already completed stockpiling and have no urgent need for large-scale replenishment. Overall sentiment is dominated by a wait-and-see approach, and trading sentiment this week was very cautious.

On the demand side, China's EV market demand remained weak in September, with cathode plants mainly drawing down inventory. Production and raw material purchasing enthusiasm were subdued, and overall production schedules fell significantly. Outside China, the EV market continued to show solid demand. In the consumer market, overall orders performed poorly due to the continued decline in raw material prices. Looking ahead to October, China's EV market is expected to recover slightly, but the extent will be limited and unlikely to return to the peak levels seen in Q2 and Q3.