November production is expected to drop back slightly [SMM Ternary Cathode Precursor Market Weekly Review]

Ternary cathode precursor prices continued to drop back slightly this week. Cost side, nickel sulphate prices declined recently. Although cobalt sulphate and manganese sulphate prices increased slightly, the rise was limited. Overall, precursor prices showed a slight downward trend, with no significant adjustment in discount coefficients yet. Some producers have begun 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. Currently, spot order discounts vary significantly among different producers, with the overall level changing little WoW.

Demand side, production in November pulled back MoM but remained at a relatively high level overall, mainly driven by high-nickel materials in the EV market. Demand is expected to contract further in December. Faced with the downward trend in raw material prices, producers are generally reluctant to increase inventory currently, and with the approaching year-end, some enterprises are actively controlling inventory levels. Overall, production in December is expected to continue pulling back. Overseas market demand remained mediocre recently.