Cost pressure continues to intensify, how to navigate the market next year [SMM Ternary Cathode Precursor Market Weekly Review]

Ternary cathode precursor prices rose slightly this week. Raw material side, nickel sulphate prices edged down this week, while cobalt sulphate transaction prices increased after a period of stability, and manganese sulphate prices remained steady, driving a slight upward adjustment in precursor prices.

The current market performance is relatively sluggish, with leading producers primarily fulfilling long-term contracts, and spot order market transactions remaining relatively limited. Some producers have initiated preliminary negotiations on commercial terms for next year's long-term contracts, but the final outcome is expected to take some time to become clear. Spot order discounts vary significantly among different producers, but the overall level changed little WoW.

Demand side, the EV market continued to show robust demand, and leading producers are expected to maintain high operating rates until year-end; the small power and consumer markets performed actively, driven by the traditional peak season and rising raw material expectations, with downstream stockpiling demand still present. Although overall order performance is good, precursor producers face increasing cost pressure. Overseas demand remained relatively mediocre recently.