SHANGHAI, Dec 29 (SMM) — Demand for precursors rose sharply amid positive domestic NE market in H2 and surge in the European EV market year-on-year. Nickel salt increased sharply in December, and cobalt salt prices began to rise in mid and late-December, driving prices of precursors to rise. Precursor prices trended higher as precursor plants still have some raw material inventories and the price hike took some time to pass through to downstream plants in approaching year-end.
Ternary precursor inventory decreased in H2, demand was positive
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Source: SMM, E: estimate
The rapid recovery of the domestic NEV market in H2 and the year-on-year surge in the European electric vehicle market greatly boosted demand for domestic precursors. Nickel salt prices increased significantly in December and cobalt salt prices began to rise in mid-to-late December, lifting prices of precursors.
Precursor prices rose in Dec on rising raw material prices and strong demand
Source: SMM, E: estimate
As precursor producers still have some raw material inventories and it is slow for higher raw material prices to pass through to downstream buyers towards the end of the year, precursor prices increased slowly.
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