In May 2024, China's ternary cathode precursor production was approximately 63,923 mt, down 13% MoM and up 4% YoY. From January to May, the cumulative production reached 352,881 mt, with a YoY increase of 20%.
On the supply side, in May, precursor producers, constrained by high metal salt prices, selectively took orders and scheduled production based on sales. As a result, precursor supply was lower-than-expected, with a significant reduction. On the demand side, domestic cathode producers reduced their procurement of ternary cathode precursors due to weaker order volumes. Regarding overseas demand, some precursor producers' overseas orders remained stable but weak.
Looking at June, on the demand side, cathode scheduled production continues to weaken. Pick-up of precursors declined under long-term orders. For spot orders, due to high nickel salt prices, some small factories, constrained by high production costs, still have external procurement needs. However, the overall volume is small, making it difficult to form a significant increase in demand. On the supply side, precursor producers, affected by losses and reduced downstream procurement, have reduced production.
It is expected that in June 2024, China's ternary cathode precursor production will be 59,963 mt, with a MoM decrease of 6% and a YoY decrease of 19%.
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