[SMM Analysis] Mid-year downstream procurement sentiment is weak, and sulphate price declines have dragged down precursor prices.

This week, ternary cathode precursor prices weakened somewhat. Nickel sulphate and cobalt sulphate prices both edged lower, while manganese sulphate prices remained stable.

Regarding discounts, for July and Q3 orders, due to relatively tight sulphate raw material supply, some producers showed willingness to raise discounts. For long-term contracts, some producers’ annual contracts were agreed at the start of the year, and payables have not yet been raised; downstream buyers were also reluctant to accept higher payables for quarterly contracts. In the spot market, some consumer spot orders in June saw nickel and cobalt payables rise, but given the relatively weak performance of nickel and cobalt salts recently, payables for July orders have not been further lifted.

On the production side, top-tier producers continued to see strong domestic and export orders this month, maintaining high production schedules. However, some producers reduced operating rates due to downstream inventory control at mid-year.

Looking ahead, sulphate prices have generally pulled back recently. Future new order prices will depend on the pace of downstream stockpiling in Q3.