[SMM Analysis] Ternary Cathode Demand Remains Weak in October

This week, ternary cathode material prices extended their downward trend, with the decline accelerating further. On the raw material side, nickel sulphate prices continued to grind lower, cobalt sulphate prices saw a notably sharper drop, and lithium carbonate and lithium hydroxide prices fell sharply for consecutive sessions, dragging ternary cathode material prices down at a faster pace. Producers generally faced significant inventory cost pressure.

On the demand side, orders in the EV market were revised further downward from the cautious expectations at the start of the month. Producers continued destocking, production pace slowed, and purchasing enthusiasm for raw materials remained weak. In the consumer market, affected by sluggish end-user digital demand and the sustained drop in raw material prices, transactions were equally subdued. Battery cell manufacturers had no urgent restocking needs and maintained a wait-and-see stance. In terms of production schedules, China's ternary cathode output in October is expected to remain flat compared with September.