[SMM Analysis] Ternary Cathode April Production Expected to Decline MoM

This week, ternary cathode material prices edged slightly lower, though the overall change remained limited. On the raw material front, cobalt sulfate prices held steady, manganese sulfate saw a modest increase, while nickel sulfate declined slightly. Lithium carbonate and lithium hydroxide prices also softened. Spot lithium salt prices are currently range-bound, with the future trend still uncertain. Further guidance from overseas supply-side developments remains to be monitored.

On transaction activity, payable levels for EV market orders showed no notable changes recently. In the consumer and e-mobility markets, some battery cell manufacturers conducted batch price-linked restocking during this week's period of low-range lithium salt price fluctuations, resulting in slightly more active transaction activity compared to the previous week.

On the demand side, the domestic EV market showed modest recovery, though the increase was limited, and manufacturers remain cautious about future production schedules. Demand in the e-mobility market remained relatively subdued, with production still largely based on sales orders and need-based procurement. On overseas orders, after the export rush period ended in April, order volumes declined, though the magnitude of the decline was smaller than previously expected. Based on current conditions, overall industry production in April is still expected to see a certain degree of decrease compared with March.