Upstream prices keep rising, while downstream buyers are unwilling to budge [SMM Ternary Cathode Material Market Weekly Review]

This week, ternary cathode material prices continued to rise significantly. On the raw material side, nickel sulphate and manganese sulphate prices rose slightly, cobalt sulphate remained stable, while lithium carbonate and lithium hydroxide saw substantial increases due to market fund activities, driving up the cost and price of ternary cathode materials.

Currently, the market generally holds bullish expectations for cobalt and lithium raw material prices in the short term, which supports cathode material enterprises in maintaining a strong willingness to raise quotations. Regarding the commercial terms for next year's long-term contracts, although it is already approaching year-end, most producers have not yet finalized the signings. The main reasons are market expectations of significant future fluctuations in cobalt and lithium prices, a certain gap in psychological price levels between cathode plants and downstream battery cell manufacturers, and the tough bargaining stance of cell manufacturers, leading to negotiations lasting over a month without a clear conclusion. Against this backdrop, some producers prefer to shorten order cycles to control risks.

On the demand side, with the recent significant rise in lithium prices, battery cell manufacturers showed little initiative in stockpiling, maintaining procurement at a rigid demand pace. Meanwhile, producers generally focused on inventory control, the overall production pace in the cathode material sector slowed down, and both domestic power and consumer markets showed a pullback trend. Looking ahead, demand in December and January next year is expected to show a month-on-month decline. However, as orders for January from some manufacturers have not been fully signed, the specific extent of the decline is expected to become clearer next week.