【SMM Analysis】Ternary Cathode Output Reaches All-Time High

This week, ternary cathode material prices continued their range-bound trend. On the raw material front, nickel sulfate prices edged up, cobalt sulfate saw slight declines, manganese sulfate remained relatively stable, while lithium carbonate and lithium hydroxide moved lower in a volatile manner.

In terms of transaction sentiment, with lithium salt prices currently in a volatile downward phase, battery cell manufacturers carried out some restocking, leading to relatively active transaction sentiment at the end of the month. On payables, due to the uncertain future trend of raw materials and ongoing negotiations between upstream and downstream players, payable coefficients in June are expected to remain at current levels.

On the demand side, the EV market saw strong overall orders and fast production pace in May, with some leading manufacturers achieving significant output growth. This was mainly driven by: active inventory building and faster pickup pace by domestic battery cell manufacturers, as well as strong demand supported by robust European vehicle sales. At the same time, orders for overseas cathode manufacturers also increased. Overall demand in the consumer market remained relatively subdued, reflected more as need-based restocking by manufacturers.

Looking ahead to June, production schedules for leading cathode manufacturers are expected to remain at relatively high levels, with ternary cathode demand projected to stay at a cyclical high.