Output is expected to reach annual production peak in September [SMM Ternary Cathode Precursor Market Weekly Review]

This week, ternary cathode precursor prices continued their upward trend. Recent production costs for nickel sulphate and cobalt sulphate remained elevated, with smelters maintaining firm quotations, leaving precursor producers still facing significant cost pressures.

Regarding the payable indicator, overall changes were relatively small compared to the previous two weeks. Discount levels for long-term agreements and large spot orders remained largely unchanged, while minor adjustments were observed for small-batch spot orders. This was primarily due to limited acceptance of higher discounts by downstream cathode material producers. Precursor manufacturers, especially those relying on long-term contracts, prioritized securing order volumes through agreements and maintained high quotations for spot orders—opting to stabilize costs and protect margins rather than engage in price competition for small one-off orders.

Demand side, the precursor market still saw some incremental growth in September, with this month expected to mark the annual production peak. Current growth mainly stemmed from the domestic EV market, while the consumer market showed mediocre performance over the past two months. Demand was projected to pull back starting October after this month’s production surge.