[SMM Analysis] Raw material prices were weak, and precursor prices declined

Published: Aug 6, 2026 13:36

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This week, ternary cathode precursor prices moved lower, with nickel sulphate prices edging down, cobalt sulphate prices dropping sharply, and manganese sulphate prices slipping slightly during the week.

On the discount front, for orders in August and Q3, some producers showed a willingness to cut discounts due to higher raw material costs of sulphates in the earlier period. For long-term contracts, some producers had already settled long-term agreements at the beginning of the year, and most producers' coefficients had not yet been cut. For quarterly contracts, downstream enterprises were also less receptive to discount cuts. Except for some top-tier producers that had certain bargaining power, most producers maintained stability overall compared with Q2. For spot orders, as nickel and cobalt salt prices had been relatively weak recently, some downstream enterprises turned to toll processing of raw materials. The order coefficient for August is expected to remain stable overall from July levels.

On the production side, top-tier producers' export orders continued to perform well this month, with production schedules at relatively high levels. China's top-tier producers also saw a clear recovery in production loads, but some small and medium-sized producers still had relatively low production schedules due to the off-season.

Looking ahead, sulphate prices have not yet shown a clear rebound. For subsequent new order prices, attention should be paid to the stockpiling pace of downstream enterprises 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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