This week, ternary cathode precursor prices continued to rise. The production costs of nickel sulphate and cobalt sulphate have remained high recently, pushing smelters to maintain firm quotes. Meanwhile, the order situation for precursor companies is good, with some producers having low raw material inventory levels, leading to a more urgent need for restocking, thus increasing their acceptance of higher upstream quotes. As it is the traditional month-end raw material procurement period for precursors, some companies in urgent need of procurement may drive transactions at high prices for sulphates, thereby driving up the discount quotes for precursors. However, downstream cathode material plants currently have limited acceptance of increased % payable for precursors, especially for large orders, making it difficult to raise discounts.
Demand side, as the peak season approaches, demand from all producers has generally improved. Currently, there is a noticeable increase in domestic demand for ternary cathode precursors in August, and September's production schedule also shows a positive trend, basically maintaining the level of August. However, due to the current high cost pressure, precursor manufacturers are in a difficult position: if they raise prices, they may face the risk of reduced orders from downstream customers, making it hard to balance order volume and profit. It is expected that in September, there will still be room for further increases in the settlement discount for ternary cathode precursors.
