We still need to wait for the market to develop. [SMM Weekly Review of Ternary Cathode Precursor Market]

This week, the prices of ternary cathode precursors saw a slight decline. In terms of raw material costs, cobalt sulphate and manganese sulphate prices rose slightly, but failed to offset the suppressive effect of nickel sulphate price reductions on precursor prices. Currently, the discount coefficients agreed upon between precursor plants and downstream cathode material producers have not changed, mainly due to the continued sluggish overall demand in the ternary market. Downstream cathode and battery cell enterprises generally do not accept an increase in discount coefficients, leaving precursor producers with little bargaining power in price negotiations.

Demand side, the overall performance of the NEV and consumer markets has been mediocre, and it is still the off-season for the ternary market. It is expected that demand may improve by the end of this month. In the domestic NEV market, some car models have shown good sales performance, driving orders for some leading precursor producers, while orders for other producers remain mediocre. Affected by macro factors such as tariff increases and the impending cancellation of NEV subsidy policies in overseas markets, the demand for ternary cathode precursors has been further suppressed, and orders for precursor producers with significant business in Japan and South Korea have been impacted to a certain extent. In terms of supply, production in July is expected to see a slight rebound and staged restocking.

Against the backdrop of weak end-use demand, the prices of ternary cathode precursors lack upward support.