Maintain cost control or accept orders? [SMM Weekly Review of Ternary Cathode Precursor Market]

This week, the prices of ternary cathode precursors rose. From the raw material side, nickel sulphate prices continued to climb, driven by both rising costs and tight supply. The quotes from cobalt sulphate smelters also continued to rise. Currently, precursor producers are facing increasing cost pressure. Some producers, in urgent need of raw materials or choosing to stockpile ahead of time, have become more accepting of raw material prices, but there is still a gap between their acceptance and the quotes from salt producers.

Driven by costs, the quotes for precursors also rose. In terms of discounts, the discount coefficient for long-term contracts remains stable currently, while multiple precursor producers have raised their discount quotes for nickel sulphate and cobalt sulphate in spot orders. However, the acceptance of price increases by downstream cathode material producers remains to be seen.

On the production side, some producers have recently increased their operating rates, mainly due to order growth driven by peak-season demand. Some producers have also stockpiled ahead of time considering production arrangements during the National Day holiday.

Looking ahead to next week, it is expected that precursor prices will continue to rise along with raw material prices, and discounts for spot orders may maintain an upward trend.