Ternary cathode precursor prices remained generally stable this week. Cost side, nickel sulphate offers edged down, while cobalt sulphate and manganese sulphate prices held steady. Although nickel sulphate prices pulled back, the adjustment was limited, and coupled with market expectations of further raw material price increases, precursor quotes showed no significant fluctuations.
Regarding discount coefficients, discounts for newly signed spot orders were generally and noticeably raised, while some long-term contracts with extended durations maintained their original discount levels. Faced with persistently rising raw material costs, precursor producers experienced increasing cost pressure, currently demonstrating a strong willingness to hold prices firm. Approaching year-end, some manufacturers are about to initiate preliminary discussions on long-term contract discounts for the coming year. If the current discount coefficients continue to be applied next year, precursor producers will face even greater cost pressure.
Demand side, domestic EV market demand continued to improve, with the main increments still concentrated in mid-to-high nickel products. Based on current production schedules, demand in the EV market is expected to remain robust until the end of the year. The small power and consumer markets also performed actively, driven by the traditional peak season, and additionally, some downstream buyers, anticipating rising raw material prices, engaged in certain stockpiling activities, further boosting production schedules. Against this backdrop, leading precursor enterprises generally maintained high operating rates and prioritized securing long-term contract supplies.
Price side, precursor prices are expected to remain relatively stable in the short term, but still possess some upside potential in the subsequent period.
