PCAM and CAM price review and forecast

Ternary Cathode Precursor

In the week of May 13-16, the price of ternary cathode precursors rose slightly. On the supply side, due to the difficulty in obtaining nickel salts in the spot market, precursor companies mainly supply their main customers. On the demand side, retail transactions were relatively stable, and some small factories facing losses in in-house production still chose to purchase externally. For long-term contracts, downstream customers reduced their pickup volumes. On the cost side, nickel salt prices increased, while cobalt salt prices remained stable, leading to an overall rise in production costs. The increase in nickel salt prices may drive a slight rise in precursor prices, but upside room will be limited as overall demand remains weak.

Ternary Cathode Material

In the week of May 13-16, the prices of ternary cathode materials declined. A significant drop in lithium prices reduced the cost of ternary cathode materials. Some ternary material manufacturers further reduced their production schedules, with declines observed across the 5, 6, and 8 series. Additionally, due to the rapid drop in lithium prices, some ternary material manufacturers faced increased inventory pressure. In the NEV market, battery cell manufacturers in May reduced their demand for ternary cathode materials due to considerations of their finished product inventories and raw material inventories. It is expected that the prices of ternary cathode materials will remain stable in the future.

LFP

Recently, LFP prices have declined, mainly due to a significant drop in lithium carbonate prices in the week of May 13-16. The price trend of LFP fluctuates based on raw material prices, and there have been no significant adjustments in processing fees recently. Some battery cell manufacturers invited bids for LFP for delivery in H2, or prepared to start bidding at the end of May. Top-tier LFP plants can secure processing fees of around 18,000 yuan/mt for high-quality products and around 16,000 yuan/mt for ordinary products. The performance of products varies with different generations, leading to significant differences in processing fees, and the LFP market prices also diverged significantly.

LCO

In the week of May 13-16, LCO prices fell. On the cost side, the cobalt market saw sluggish transactions. The prices of Co3O4 and lithium carbonate declined, weighing down LCO prices. Due to the decline in raw material prices, some companies adjusted their quotes to varying degrees. On the supply side, LCO supply saw a slight increase in May. Competition remains fierce, with some manufacturers opting for price reductions to boost sales. Looking ahead, Co3O4 prices are expected to continue to decline, and LCO material prices are anticipated to remain weak.

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