[SMM Analysis] Scrap Prices Fluctuated with Salt Prices; Lithium Carbonate Prices Declined Last Week

Last week, the scrap market experienced price fluctuations. In the ternary sector, nickel sulphate prices rose slightly due to just-in-time procurement at month-end and continued firm quotes from salt producers. After two weeks of continuous increases, lithium carbonate prices began to decline, and cobalt sulphate prices also continued to fall due to insufficient demand support. The decline in cobalt sulphate and lithium carbonate prices outpaced the rise in nickel sulphate prices, leading to a slight decrease in the overall prices of ternary pole piece powder and battery powder. Transaction activity last week decreased WoW, especially for LFP scrap. With the decline in lithium carbonate prices, more wet-process producers expressed a bearish outlook on future salt prices, resulting in more cautious purchasing. Currently, the actual transaction prices in the market are around 2,800-3,000 yuan per lithium point. Although production remains relatively stable for wet-process producers engaged in tolling business and self-use, some lower-tier wet-process enterprises have shown increased inquiry activity. However, due to the inverted structure between lithium extraction cost from scrap and lithium carbonate selling prices, market transactions remain sluggish. In summary, in the short term, scrap prices are expected to fluctuate with nickel, cobalt, and lithium prices.