This week, the price of ternary precursors has been affected by the upward trend in the prices of finished nickel and cobalt salts. The cost of raw materials has increased significantly, triggering an increase in prices. From a fundamental point of view, on the demand side, due to the large increase in the price of nickel salt finished products and the low level of finished product inventory in nickel salt plants, ternary precursor plants have become more difficult to purchase nickel salt, and some ternary precursor to ternary cathode integration companies have emerged. Reduce the proportion of self-produced precursors, and some choose to directly procure finished precursor products from outside. Some ternary precursor companies are bullish on the average price of nickel salt in June and are building warehouses ahead of schedule. The overall demand is optimistic than expected. On the supply side, precursor companies take orders selectively because raw materials are difficult to purchase and prices are high, focusing on maintaining long-term customers. Therefore, supply and demand are relatively tight, causing the upward price increase of precursors to be smoothly transmitted to downstream cathode companies. It is expected that in the future market, the price of nickel and cobalt salt will be at a high level, and the price of ternary precursor will mainly be at a high level. However, as overall demand remains weak, the upside potential is limited.