Export orders are expected to increase significantly this month [SMM Ternary Cathode Precursor Market Weekly Review].

This week, ternary cathode precursor prices continued to rise slightly. On the raw material side, nickel sulphate prices remained stable, manganese sulphate prices rose slightly, and although cobalt sulphate prices continued to increase, the rate of increase narrowed significantly WoW. Currently, spot supply of nickel sulphate is tight, and cobalt sulphate quotations remain high, supporting precursor producers in maintaining firm quotations.

As the fluctuation range of raw material prices narrowed and the traditional downstream procurement period at month-end approached, market activity increased. Downstream inquiries became more frequent, and precursor producers also became more active in providing quotations. Downstream enterprises showed greater acceptance of price increases compared to last week, and cathode material producers with rigid procurement needs have started making partial purchases, with spot order discounts already adjusted significantly higher.

Recently, leading precursor enterprises reported good order intake, and their operating rates increased. Current capacity is prioritized to fulfill long-term contracts for long-established customers, with long-term contract discounts remaining at previous levels. As year-end approaches, producers will gradually begin negotiations on commercial terms for next year's long-term contracts, and price trends are expected to become clearer around month-end.

Demand side, the EV market showed robust demand recently, with orders for medium- and high-nickel materials from leading precursor producers being particularly strong. Growth in sales of some overseas car models also drove corresponding demand. Furthermore, as the export control policy for precursors is set to take effect in early November, a wave of front-load orders emerged ahead of the policy implementation, and export orders are expected to increase significantly this month. Demand in the consumer market remained generally stable, and the rise in cobalt prices also drove related orders to some extent.