NMC Material Prices to Drop Further amid the Rising Costs

SHANGHAI, Feb 14 (SMM) - NMC materials: The average monthly price stood at 320,000 yuan/mt in Janauary, down 7% MoM and up 20% YoY, and is expected to dip slightly in February.

In early January, the costs of NMC material companies dropped significantly amid the slumping lithium prices. Orders placed by terminal enterprises decreased sharply in the off-season of power battery and electronics sectors. In such a context, the battery cell companies focused on easing their inventory pressure and greatly reduced operating rates. NMC material prices also showed a rapid decline following the cost. In mid-January, the prices fell slowly and stabilised owing to the stable costs. Most manufacturers began to take the CNY holiday amid the off-season and upcoming Chinese New Year. In late January, most companies gradually started to resume their work as the CNY holiday ended. The market inquiries increased, boosting the market activity. But most players still held a wait-and-see sentiment, and the transactions were scarce. The prices are likely to drop further amid the rising costs.