[SMM Analysis] Precursor coefficient stayed stable overall, with sulphate prices dragging down precursor prices.

Published: Jul 16, 2026 14:30

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This week, ternary cathode precursor prices edged down. Nickel sulphate and cobalt sulphate prices declined, while manganese sulphate prices rose slightly.

Regarding discounts, for July and Q3 orders, some producers showed willingness to raise discounts due to higher costs of sulphate raw materials. For long-term contracts, some producers had already settled their annual contracts at the beginning of the year, so coefficients have not been raised. For quarterly contracts, downstream acceptance of coefficient increases was also weak, and overall, they remained stable compared with Q2. For spot orders, nickel and cobalt coefficients for some consumer-related spots had already risen in June, but due to the relatively weak performance of nickel and cobalt salt prices recently, coefficients for July orders did not see further increases overall.

On the production side, export orders for top-tier producers remained strong this month, with production schedules at high levels. However, some producers reduced production loading due to finished product inventory buildup caused by downstream destocking around mid-year.

Looking ahead, sulphate prices have pulled back recently. For subsequent new order pricing, attention should be paid to the pace of downstream stockpiling in Q3.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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