【SMM analysis】Echelon Utilization Market Update: Stable Demand and Limited Price Growth

In the echelon utilization market, rigid demand remained generally stable by late August, with both domestic and international markets still receiving some support due to the policy transition period. Although sales enthusiasm for new energy vehicles gradually faded in the early part of August, the supply of retired power batteries stayed steady, while end-use market demand performed weakly, and limited growth is expected in the near term. The earlier increase in lithium carbonate prices has been transmitted to the terminal battery cells, leading to a slight rise in cell prices, which also nudged up prices of echelon cells. However, as the market remains in a tentative supply-demand balance, companies are mostly dealing at market rates, and further significant price increases for echelon cells are likely to be limited. Overall market activity remains subdued, with some echelon companies continuing to maintain low inventory levels and purchasing mainly based on immediate needs.