SMM Analysis On China October Ternary Cathode Precursors Production And November Forecast

In October 2024, China's production of ternary cathode precursors increased 0.7% MoM and was down 0.3% YoY. On the supply side, production in October declined for some top-tier enterprises due to production halts for maintenance and weakened overseas demand. However, production slightly increased for certain top-tier enterprises as end-use market demand picked up at month-end. Production for non-top-tier ternary cathode precursor enterprises remained largely unchanged from the previous month. On the demand side, domestic end-use market purchase willingness improved, leading to a slight increase in the production schedule of ternary cathode materials producers. The rise in production schedules at month-end resulted in a slight uptick in the precursor market in October. Looking ahead to November, due to year-end destocking and weakening end-use demand, China's production of ternary cathode precursors is expected to decrease 2% MoM and increase 4% YoY. The overall market is expected to exhibit a weak supply and demand pattern.