China's Ternary Cathode Precursor Output In September And Forecast For October

SHANGHAI, Oct 12 (SMM) –

In September, the production of ternary cathode precursor in China was approximately 74,806 mt, down 9% MoM and 15% YoY. The cumulative production from January to September was 602,877 mt, up 1% YoY.

On the supply side, ternary cathode precursor companies had relatively large inventories at the end of the quarter, leading to a significant decrease in production. The domestic market is dominated by low-nickel ternary cathode precursors, with relatively stable sales in automotive sector and some incremental growth. In addition, the increase in domestic sales driven by new battery projects contributed to a slight increase in production. However, the overseas power battery market showed a significant decline, with some companies significantly reducing their production of high-nickel precursors due to poor export orders. In terms of series, the proportion of medium and low nickel precursors saw a slight increase, while that of high-nickel ones decreased.

Entering October, the demand outlook for the overseas power battery market in the fourth quarter is poor, and the export orders for ternary cathode precursors may further decline. The domestic demand for high-nickel precursors in the power battery sector is also weakening. Combined with the fact that some precursor companies continue to reduce their inventories in October, there is an expectation of downward production adjustment. The estimated production of ternary cathode precursor in China for October is 71,235 mt, a decrease of 5% MoM and 22% YoY.