Lithium- PCAM and CAM price review and forecast
1. Ternary cathode precursor
For the week ending February 29, ternary cathode precursor prices inched higher. Slight increase in price of nickel elevated production costs for ternary precursor. Several precursor companies raised their prices. Supply side, companies that paused production for maintenance have resumed operations, withsome selectively taking orders based on raw material costs. Demand side, rising nickel prices and March growth expectations spurred increased demand, leading to more inquiries from downstream buyers. Market outlook suggests that while short-term expectations for nickel price recovery remain, downstream battery cell and cathode makers have limited tolerance for precursor price hikes, capping gains of ternary cathode precursor prices.
2. Ternary cathode material
For the week ending February 29, ternary cathode material prices experienced a rebound. On the cost side, nickel and lithium prices recovered, raising cathode material production costs. Cathode (for EV battery) prices under long-term contracts prevail without major discount changes for related metals. In the fixed-price consumer cathode market, prices rallied after metal prices bounced back. On the supply side, scheduled production dipped in the February Spring Festival low season, but saw a general uptick in March, with medium to high-nickel materials demonstrating a more positive trend. From the demand side, consumer battery manufacturers' earlier stockpiling has dampened their immediate interest in higher-priced ternary cathode materials. Yet, demand from EV battery producers is expected to grow in March, especially for stocking up medium and high-nickel products for end-terminal projects. Prices for ternary cathode materials are expected to remain robust in short term.
3. LFP
For the week ending February 29, LFP prices saw a modest uptick, with the market leaning towards long-term contracts and fewer spot deals. Supply side, lithium carbonate costs crept up steadily, causing a slight rise in LFP costs. On the supply side, LFP producers plan to raise March scheduled production.In terms of demand, there's a consistent rebound in the EV and energy storage sectors, resulting in a rising demand for LFP. The near-term outlook indicates that LFP prices are expected to hold stably.
4. LCO
For the week ending February 29, LCO prices held steady. On the cost side, cobalt prices remained stable, whereas lithium prices rose, increasing LCO production costs. Major LCO manufacturers kept quotes steady, with minor upward adjustments by some. Downstream buyers' limited acceptance of price hikes has led to a market with stable price trends. On the supply side, February marks a low season for the LCO market, with few maintaining continuous production. Most factories scheduled breaks, but post-holiday, some plan to restart, with positive expectations for March operations among several enterprises. Looking ahead, with anticipated lithium price hikes, LCO prices may inch higher.
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