In March 2024, China's output of ternary precursor reached approximately 77,550 tons, with a month-on-month increase of 27% and a year-on-year increase of 43%.
On the supply side, in March, precursor production enterprises resumed normal operations after the holiday. Coupled with improving vehicle sales data in March and downstream destocking before the holiday, demand was smoothly transmitted. Therefore, precursor enterprises adjusted production according to sales and increased supply. On the demand side, most domestic cathode enterprises actively stocked up. The 6-series materials of leading battery cell manufacturers in China still showed strong demand. Regarding overseas demand, some precursor companies saw an increase in overseas orders, indicating an overall positive trend.
Looking ahead to April 2024, in terms of demand, domestically, the demand for 6-series materials in the power market is still promising, but with limited growth. The growth may shift towards 5-series and 8-series materials. On the supply side, although the ternary market is generally rebounding, some companies may experience a weakening of overseas orders. Overall, precursor production will continue to be adjusted according to demand.
It is expected that China's ternary precursor production in April 2024 will reach 80,290 tons, with a 4% increase, representing a 50% year-on-year increase. As of April, China's cumulative ternary precursor production for January to April is estimated to be 295,555 tons, with a year-on-year increase of 27.48%.
For more inforamtion, please contact: cathycai@smm.cn
