[SMM Analysis] Ternary Cathode Precursor Market Analysis for the First Week of November and October Review

This week, ternary cathode precursor prices continued to decline due to a slight drop in raw material prices. As of this Thursday, SMM ternary cathode precursor 5-series (polycrystalline/consumer type) prices were 61,800-63,700 yuan/mt, and 5-series (monocrystalline/power battery) prices were 62,800-64,500 yuan/mt. SMM ternary cathode precursor 6-series (polycrystalline/consumer type) prices were 64,500-66,800 yuan/mt, and 6-series (monocrystalline/power battery) prices were 63,900-66,100 yuan/mt. SMM ternary cathode precursor 8-series (polycrystalline/consumer type) prices were 78,400-80,100 yuan/mt, and 8-series (polycrystalline/power battery) prices were 79,500-81,500 yuan/mt.

Cost side, this week, nickel sulphate prices decreased by 75 yuan/mt, cobalt sulphate prices decreased by 350 yuan/mt, and manganese sulphate prices decreased by 40 yuan/mt. The decline in metal salt prices dragged down precursor costs. Looking ahead, nickel, cobalt, and manganese salt prices are expected to have some room for decline, but the decrease will be limited, and precursor prices will remain stable with a weak trend.

Demand side, ternary cathode material manufacturers saw a slight increase in overall demand in October compared to September, with a rise in procurement volume. Supply side, most leading ternary cathode precursor companies slightly increased production in October, while a few leading companies saw a slight decrease in production due to overseas demand and shutdowns for maintenance. Non-leading ternary cathode precursor companies maintained production levels similar to September. Looking ahead to the production schedule, ternary cathode precursor companies are expected to slightly reduce production due to year-end destocking.