Demand from motive power and digital markets diverged, demand for high-nickel materials grew significantly

SHANGHAI, Apr 13 (SMM) – Precursor production in March was 39,000 mt, up 11.2% month on month. Precursor enterprises basically resumed production in March. Demand from the motive power market was stable. Demand for high-nickel precursor continued to grow. Demand from the digital and small motive power markets was weak.

This, coupled with big fluctuations of raw material prices, turned downstream producers cautious  about procurement. Small and medium-sized enterprises had weak cost control. As a result, output of 5-series precursor declined.

China's ternary output stood at 29,000 mt in March, a month-on-month increase of 12%. Output of ternary materials companies recovered. Overseas motive power market demand increased, overseas BBA car companies determined the high nickel route, resulting in rising demand for high nickel products from domestic battery and material companies. Demand for digital equipment and small motive power markets was muted, and the proportion of the 5-series output has decreased.