The cathode plant is still under pressure amid the recovering market demand [SMM Weekly Review of Ternary Cathode Material Market]

This week, the prices of all types of ternary cathode material rose, primarily driven by the continuous increase in raw material prices. Nickel sulphate continued to rise amid tight supply and rising costs, while cobalt sulphate quotes continued to climb. Affected by the suspension of mining operations at some mines, lithium carbonate prices surged significantly, and lithium hydroxide prices followed suit, driven by market sentiment. Currently, raw material prices generally exceed the psychological expectations of cathode plants, and the outlook for nickel, cobalt, and lithium chemicals remains bullish, putting cathode plants under continued pressure amid recovering market demand.

Demand side, the increase in domestic NEV market orders is mainly concentrated in medium-to-high nickel products from leading producers. In the European market, demand for high-nickel materials remains robust, while the US market shows relatively weak performance. The proportion of high-nickel orders and new projects in the consumer electronics sector has also increased recently.

Given the continuous rise in costs, it is expected that the prices of ternary cathode material will continue to trend upwards next week.