[SMM Analysis] Ternary Cathode Material Prices Further Pulled Back This Week

This week, ternary cathode material prices continued to show a downward trend. Although the prices of nickel sulphate and cobalt sulphate rebounded slightly, they failed to offset the downward pressure caused by the significant price reductions of lithium carbonate and lithium hydroxide. Current market supply mainly relies on previously signed long-term contracts, and some companies have already raised the relevant discount coefficients. For spot orders, manufacturers generally negotiate discounts separately for raw materials such as nickel sulphate and cobalt sulphate for settlement.

In terms of production and order execution, all production plans and order deliveries are progressing in an orderly manner, with overall supply conditions basically flat compared to March. Looking ahead to Q2, demand is expected to rebound compared to Q1, but the increase will be limited. From a product structure perspective, demand for medium-nickel ternary cathode materials increased this month, and the market share of 6-series products is expected to further improve. From the perspective of end-use applications, demand for ternary cathode materials for small power has been relatively active recently, while demand for large power and consumer ternary cathode materials has remained stable. Overall, the ternary market still lacks significant new demand drivers. In terms of prices, ternary cathode material prices are expected to be affected by raw material price fluctuations this week, showing a slight fluctuating trend.