Ternary cathode precursor prices continued their upward trend this week. Cost side, supported by cost factors, nickel sulphate, cobalt sulphate, and manganese sulphate prices all rose. Spot order discount quotes in the precursor market have not yet shown significant corresponding adjustments. Regarding long-term contract discount negotiations, due to the still significant price gap between upstream and downstream, some producers opted to sign short-term orders as a transitional solution. Trend-wise, raising discounts next year remains the mainstream direction.
Demand side, overall demand pulled back towards year-end, but production schedules at some leading producers remained high, supporting a limited overall decline in precursor production in December. Looking ahead to January, market demand is expected to pull back further. However, considering that some producers will stockpile ahead of the Chinese New Year, the overall decline is expected to remain relatively limited. Overall, precursor market performance by the end of the year was slightly better than previous expectations.
Price side, supported by firm cobalt sulphate prices and a rebound in nickel prices, ternary cathode precursor prices are expected to have further room to rise in early January.
