The market for ternary cathode precursors is recovering [SMM Weekly Review of Ternary Cathode Precursor Market]

This week, the price of ternary cathode precursor showed an upward trend. In terms of raw material costs, the prices of nickel sulphate and cobalt sulphate increased slightly, while the price of manganese sulphate dropped back slightly. Considering the expectation of further price increases for nickel salts and cobalt salts, it is anticipated that the price of precursors will continue to rise. Currently, the discount coefficients agreed upon between precursor producers and downstream cathode plants have not been adjusted. However, if the supply of nickel sulphate and cobalt sulphate tightens in the future, there is a possibility of an increase in the discount coefficients for spot orders.

Supply and demand side, the estimated production of ternary cathode precursor in July and the expected production schedule for August have both been revised upwards. On one hand, the traditional peak season for the automotive market, "September-October peak season," is approaching, and the industry chain has entered the stockpiling stage. On the other hand, the recent rapid increase in lithium chemicals prices has led some cathode producers to choose to purchase raw materials in advance, resulting in orders being placed in advance. The domestic NEV market demand has shown signs of recovery, with orders for medium-nickel, medium-high-nickel, and high-nickel materials all increasing. However, the market remains concentrated among leading producers. It is expected that the supply of ternary cathode precursor will increase slightly month by month from July to September, with a possible seasonal pullback in Q4.