[SMM Analysis] This week, the prices of ternary cathode material continued to decline

This week, the prices of ternary cathode materials decreased slightly. On the raw material side, the prices of nickel sulphate, cobalt sulphate, and manganese sulphate remained stable overall, while the prices of lithium carbonate and lithium hydroxide continued to decline. Currently, the market supply mainly relies on long-term agreements signed previously, with some companies having increased the relevant discount coefficients. For spot order transactions, manufacturers generally adopt a settlement method of negotiating discounts separately for raw materials such as nickel sulphate and cobalt sulphate.

In terms of production and order execution, the demand for small power and consumer-grade ternary cathode materials performed well this month, with relatively active order signing. Meanwhile, the demand for large power-type ternary cathode materials remained relatively stable. It is expected that the overall market supply in May will increase slightly, with the increase mainly coming from small power, consumer-grade orders, and demand from some overseas large power customers. From the perspective of product structure, the demand for medium-nickel ternary cathode materials increased in Q2. It is expected that the market share of 6-series ternary cathode materials will further increase subsequently, gradually squeezing the market share of 8-series ternary cathode materials. Due to the current prominent cost advantages of medium-nickel materials, the trend towards medium-nickel materials is expected to emerge simultaneously in overseas markets in the future. In terms of prices, it is expected that the prices of ternary cathode materials this week will still be affected by the downward trend in lithium chemicals prices, showing an overall fluctuating trend.