[SMM Analysis] The market for ternary cathode precursor recovers, with production of high-purity manganese sulphate increasing slightly in July

In July 2025, the production of high-purity manganese sulphate increased significantly MoM and also achieved a certain level of improvement YoY.

Supply side, manganese salt plants maintained an active production schedule overall this month. Affected by destocking in the market in June, some orders were transferred to July for execution, which directly led to a significant increase in the supply volume for the month, with a prominent MoM increase. Meanwhile, all manufacturers steadily advanced the delivery of long-term contracts. The demand side exhibited structural characteristics: driven by favorable factors, the downstream ternary cathode precursor market saw an increase in restocking activities. Coupled with the approaching September-October peak season, enterprises' stockpiling demand was released, leading to an increase in the execution volume of long-term contracts for high-purity manganese sulphate and boosting market vitality. However, spot order purchases remained at a low level, and there was no stockpiling phenomenon in the market.

It is expected that in August 2025, the downstream ternary cathode precursor market will continue to maintain a stable growth trend, which is expected to drive the production of manganese salt plants to achieve another MoM increase and also maintain a certain growth rate YoY.