[SMM Analysis] Ternary Cathode Demand in October Remains Sluggish

This week, ternary material prices continued to decline, with the downward momentum further intensifying. On the raw material side, nickel sulfate prices kept edging lower, cobalt sulfate prices fell at a notably faster pace, while lithium carbonate and lithium hydroxide prices plunged for consecutive sessions, driving ternary material prices sharply lower. As a result, producers are now broadly facing considerable inventory cost pressure.

On the demand side, orders in the power battery market were revised down further from the cautious expectations set at the beginning of the month. Producers continued to destock, slowed their production pace, and showed weak enthusiasm for raw material purchasing. In the consumer electronics market, weighed down by lackluster demand for digital end products and the continuous decline in raw material prices, transactions were likewise subdued, with cell makers seeing no urgent restocking needs and maintaining a wait-and-see stance.

In terms of production scheduling, domestic ternary cathode production for October is expected to stay flat compared with September.