Increased high-nickel precursor output limited decline in precursor production

SHANGHAI, Mar 16 (SMM) – Precursor production in February was 35,000 mt, down 10.8% month on month. Some small producers closed for 7-12 days for CNY and a few producers reduced output, while others basically maintained stable operating rates. A producer in Zhejiang raised output of high-nickel precursor due to supply shortage in January. 

China's ternary material production stood at 25,700 mt in February, a month-on-month decrease of 13.1%. The reason for this decline is that available production days in February declined and some producers reduced production lines. On the demand side, the motive power market demand was positive, and operating rates at major battery companies were bearish. Their demand for ternary materials were positive amid pre-CNY restocking.