[SMM Analysis] Ternary Market Trading Sentiment Recovered Overall This Week

This week, ternary cathode material prices pulled back but remained in a high range. Raw material side, lithium carbonate futures prices fluctuated significantly, with an overall WoW pullback; lithium hydroxide prices followed the downward trend; cobalt sulphate prices held flat; while nickel sulphate and manganese sulphate prices rose slightly. Influenced by the rapid surge in raw material prices last week, some producers conducted batch purchases and stockpiling during this week's price pullback window, leading to more active overall market transactions WoW.

Demand side, demand for high-nickel materials in the EV market dipped slightly, while orders for high-nickel materials from some producers grew due to advance exports spurred by the impending cancellation of the export tax rebate policy, although the export volume fell short of previous expectations. Consumer market side, sustained increases in raw material prices this month suppressed purchase willingness among downstream battery cell manufacturers, coupled with the traditional off-season at the start of the year, resulting in an overall order pullback. By material series, although the share of high-nickel materials increased in January, the 6-series materials still dominated, with a stable market share of around 50%.

Looking ahead to February, due to the arrival of the traditional off-season, fewer effective production days, and planned maintenance by some producers, overall production is expected to decline noticeably.