【SMM Analysis】Decline in lithium prices, stable nickel and cobalt prices lead to divergent trends in ternary and LFP scrap purchasing demand

in August, the downstream salt sector experienced significant fluctuations. Among them, lithium chemicals prices saw a rapid decline from mid-August, quickly dropping to a low point of around 72,000 yuan. Although prices gradually stabilized afterward, they still had a noticeable dragging effect on LFP scrap prices. During the downturn, some wet-process producers, already operating at low capacity, sold off their LFP scrap inventory to reduce inventory impairment losses. Companies with purchasing needs also delayed procurement due to the sharp price drop, leading to continuously lowered transaction expectations and shifting the market's transaction focus downward. In mid-August, lithium carbonate futures prices rose due to capital inflows and oversold rebound sentiment. However, the scrap end, constrained by its own supply-demand dynamics, found it easier to fall than rise, and prices gradually stabilized by the end of the month. In contrast, the price trend for ternary scrap was relatively firm. In early to mid-August, prices were under pressure due to the significant decline in lithium chemicals prices. However, by mid to late August, cobalt sulphate prices remained stable, and nickel sulphate prices, due to low inventory levels, even rebounded slightly after a prolonged decline. This, to some extent, boosted the demand for cobalt and nickel extraction from black mass by some downstream wet-process producers, stimulating increased procurement of ternary scrap. Although prices continued to decline that month, the overall trend performed better than LFP scrap.