Ternary cathode precursor producers continued destocking this week [SMM Ternary Cathode Precursor Market Weekly Review]

Ternary cathode precursor prices remained generally flat this week. On the raw material side, nickel sulphate prices continued to drop slightly, while cobalt sulphate and manganese sulphate prices edged up.

The main market changes centered on discount coefficients: current quotations varied among producers, primarily due to year-end inventory control and shipment needs driving targeted price adjustments, and also because leading producers have not yet finalised long-term contract discounts for next year, leaving market information unclear and most enterprises still awaiting definitive results. Currently, nickel sulphate discounts are expected to see relatively small changes with limited upside room; in contrast, precursor producers hold clearer expectations for an increase in cobalt sulphate discounts.

Demand side, approaching year-end, both power and consumer markets saw an overall pullback, with producers generally controlling inventory and slowing down production pace, leading to relatively mediocre order performance.

Price side, supported by expectations of subsequent cobalt sulphate price increases, precursor prices are still expected to have some upside room.