SMM Analysis On China September Ternary Cathode Precursor Production And October Forecast

In September 2024, China's production of ternary cathode precursors decreased by 5% MoM and 1% YoY. Supply side, in September, due to continuously falling raw material prices and intense market price competition, manufacturers faced operational difficulties and losses, leading to reduced production schedules for small and medium-sized enterprises. Only leading precursor companies maintained stable production schedules, with a high concentration among top players. Demand side, after a brief recovery in stocking demand for ternary cathode materials, there was another decline in September. Simultaneously, overseas demand for ternary cathode materials also decreased, resulting in a significant reduction in precursor orders in September. The market mainly focused on maintaining essential demand. It is expected that in October, China's production of ternary cathode precursors will continue to decrease by 5% MoM and 4% YoY, with the market showing a weak supply and demand pattern.