[SMM Analysis] Ternary Cathode Precursor Market Was Sluggish Pre-Holiday, Prices Remained Relatively Stable

Due to the conflict in the Middle East, shipping through the Strait of Hormuz has been disrupted, raising the risk of tighter global sulphur supplies. Indonesia relies on the Middle East for around 75% of its sulphur imports, and sulphur is a key raw material for producing sulphuric acid, which is essential for leaching metals in nickel and copper processing. Analysts note that sulphur inventories at Indonesia’s HPAL nickel plants typically cover only one to two months of consumption. If transport disruptions persist, some plants may be forced to cut production as early as next month. Overall, if shipping disruptions in the Middle East continue for more than a few weeks, production and demand for related metals may need to slow.

On March 3, the 120,000 kW generation-grid-load-storage integrated project of Inner Mongolia Envision New Materials Co., Ltd. in Damaoqi successfully achieved grid connection. The project’s core construction covers two major segments: power supply and energy storage. The wind power section has a total installed capacity of 120 MW, with a 22 MW/22 MWh electrochemical ESS built simultaneously. The project adopts advanced grid-forming ESS technology, enabling smoothing and regulation of wind power output and flexible power dispatch, effectively improving the stability of power supply and supporting the efficient consumption of new energy power.

A blocked Strait of Hormuz would upend global methanol supplies, hammer conventional methanol markets, and elevate green methanol’s strategic value, pushing China to diversify imports and boost green methanol for supply security.