NCM cathode demand may decline in May

Early in the week, falling cobalt and lithium prices dragged down NCM cathode prices. Supply side, production in April was based on orders. As EV battery makers reduced orders for May, NCM cathode production may decline accordingly next month. While NEV sales fell MoM in April, overall demand for battery was positive, thus demand for NCM cathode also grew. However, NCM cathode demand may decline in May, which is attributed to three reasons: 1. the need to digest previously stockpiled raw material stocks; 2. fears that NEV sales could weaken in Q2; 3. premature demand release in Q1 when NEV makers prepared for the launch of new models. Looking ahead, NCM cathode prices may mostly stabilize.