SHANGHAI, Jun 9(SMM) -
China produced 54,750 mt of ternary cathode precursor in May, an increase of 4% month on month and 19% year on year.
On the supply side, the precursor enterprises were still affected by demand, and the output recovery was slow. Some small factories suspended production for one week or more at the beginning of May. The new production capacity of leading enterprises climbed, and the overall output increased slightly.
On the demand side, the supply chain of terminal car companies recovered slowly as the pandemic was still serious in Shanghai in May, while the leading battery factories continued to reduce ternary materials inventory. The demand of ternary materials for precursors recovered slowly in May.
In addition, in terms of digital, the market was muted in May with few small orders. The demand for motive power was fair in the overseas market, and the export volume of precursors increased steadily. Therefore, the demand for precursors in May was relatively stable.
It is expected that downstream motive power will recover well in June and digital demand may recover slowly while overseas orders will increase steadily. The output of precursors is expected to be 65,839 mt, up 20% on the month.
