From an overall data perspective, at the end of August, the rigid demand in the second-life application market remained stable, with domestic and overseas markets receiving some support due to the policy transition period. In early August, the sales momentum of new energy vehicles gradually faded, but the overall market supply increased MoM, with the supply of end-of-life batteries remaining stable. The demand from end-use applications was mediocre, and it is expected that future demand growth will be limited. The previous rise in spot lithium carbonate prices was passed on to terminal battery cells, leading to a slight increase in battery cell prices, and second-life battery cell prices also rose slightly as a result. Recently, spot lithium carbonate prices have fallen, but the price transmission takes time, so second-life prices have remained unchanged recently. The overall market basically maintained a balance between supply and demand, with companies trading according to market conditions, and it is expected that the increase in second-life battery cell prices will be limited. Market transactions remained sluggish, with some second-life battery producers continuing to operate with low inventory, and purchases mainly driven by essential needs.

In terms of discounts, the settlement discount for ternary cathode has not changed much recently. The increase in the upstream sulphuric acid coefficient has yet to be passed on to the downstream, but it is expected that the % payable may rise in September. On the demand side, as production schedules peaked noticeably in August, there might be a slight pull back in September.

Cobalt sulphate prices continued to rise this week, while nickel sulphate prices also rose slightly. However, the prices of salt products such as lithium carbonate continued to fall. This week, despite the increase in salt prices, the nickel and cobalt payable indicators for ternary, LCO black mass, and other materials rose slightly, while the lithium payable indicator continued to decline after a drop. The weekly prices of LFP black mass per % lithium were largely stable with fluctuations. Taking ternary black mass as an example: currently, the nickel and cobalt payable indicator for ternary pole piece black mass is 73-75%, remaining flat WoW, while the lithium payable indicator is 68-72%, down 3% WoW. The price of LFP pole piece black mass is 2,800-3,000 yuan/mtu, and the price of battery black mass is 2,550-2,800 yuan/mtu, down 125 yuan/mtu MoM.

Demand side, as the peak season approaches, demand from various producers generally improves. It is expected that in September, there will be further room for an increase in the settlement discount for ternary cathode precursor.

[Domestic and Overseas Inventory Trends Diverge, SHFE Zinc Expected to Be in the Doldrums] The most-traded SHFE zinc 2510 contract opened at 22,135 yuan/mt. After the opening, a fierce battle between longs and shorts ensued, with the center of SHFE zinc fluctuating rangebound around the daily average. It finally closed down at 22,170 yuan/mt, falling 140 yuan/mt, or 0.63%. Trading volume increased to 156,000 lots, and open interest rose by 6,801 lots to 115,000 lots.....

[SS Futures Drives Spot Stainless Steel, Inventory Continues to Drop] SMM reported on August 28 that the SS futures showed a trend of first falling then rising. After the night session opened, it quickly fell and then operated below 12,800 for most of the time. In the afternoon, it rebounded and strengthened, closing above 12,850 yuan/mt. In the spot market, prices were lowered in the morning due to the decline in SS futures and poor acceptance of high-priced goods by downstream end-users. Traders faced significant pressure to sell off inventory at month-end. In the afternoon, as futures stopped falling and started to rise, market confidence returned, leading to improved transactions and higher quotes. This week, social inventory further decreased, down 0.49% WoW to 928,800 mt. In the futures market, the most-traded contract 2510 fluctuated. At 10:30 AM, SS2510 was quoted at 12,800 yuan/mt, down 90 yuan/mt from the previous trading day. The spot premiums/discounts for 304/2B in Wuxi ranged between 320-470 yuan/mt. In the spot market, Wuxi cold-rolled 201/2B coils were quoted at 8,050 yuan/mt; cold-rolled 304/2B coils averaged 13,025 yuan/mt in Wuxi and 13,025 yuan/mt in Foshan; cold-rolled 316L/2B coils were 25,675 yuan/mt in both Wuxi and Foshan; hot-rolled 316L/NO.1 coils were 25,100 yuan/mt in both locations; and cold-rolled 430/2B coils were 7,400 yuan/mt in both Wuxi and Foshan. Last week, SS futures continued to fall, completely erasing gains made this month…