[SMM Analysis] Review of the Ternary Cathode Material Market This Week

This week, due to mediocre post-holiday downstream procurement demand, lithium chemical prices on the raw material side declined, leading to a drop in prices across various ternary cathode materials. Among them, 5-series and 6-series materials experienced significant cost and price reductions, driven by the decline in lithium carbonate prices. In contrast, the cost of 8-series materials remained stable, primarily because the prices of lithium hydroxide and sulphuric acid raw materials showed no significant fluctuations this week, resulting in a relatively stable cost structure.

In terms of production and supply, the recovery of orders for ternary cathode material manufacturers in March varied. Orders for 6-series materials were relatively optimistic, while 5-series and 8-series materials might fall short of pre-holiday expectations. Many enterprises remain in a wait-and-see phase, awaiting downstream order conditions at the end of February to determine future production plans. Overall, industry concentration further intensified, with small and medium-sized enterprises experiencing a significant reduction in orders. Market competition has intensified, and resources and orders are increasingly concentrated among top-tier enterprises.