[SMM Analysis] Ternary Cathode Market Sees Light Activity This Week Ahead Of Spring Festival

This week, ternary cathode material prices edged up slightly. On the raw material side, prices of nickel sulfate, cobalt sulfate, and manganese sulfate remained largely stable, while lithium carbonate and lithium hydroxide rebounded, driving a slight increase in ternary material prices. Due to the approaching Spring Festival holiday, downstream cell manufacturers showed subdued purchasing sentiment, with inquiries relatively scarce. Cathode manufacturers' willingness to sell was also generally weak.

In terms of payables, the market payable level this week remained largely unchanged from last week. As the Spring Festival holiday nears, some manufacturers prefer to maintain existing payables before the holiday and postpone negotiations until after the holiday. As a result, recent payable adjustments have been relatively limited. Compared to last year's model of widespread long-term contract signing, more manufacturers are currently opting to negotiate orders on a monthly or quarterly basis.

On the production front, with the Spring Festival holiday approaching, ternary cathode material enterprises have generally slowed their production pace. Some manufacturers have already taken early holidays or commenced routine maintenance. It is expected that after the holiday, as demand and production gradually recover, the ternary market will return to being more active.