Second-life application market remained stable this week, with weakening costs hinting at downward pressure [SMM weekly review]

SMM, September 17:

Second-life application this week:

The second-life application market remained generally stable this week, with limited fluctuations in quotations across categories and subdued trading activity. The cost side was sluggish overall, with raw material prices continuing their downward trend. This week, lithium carbonate maintained its downward trajectory, nickel sulphate pulled back slightly, and cobalt sulphate continued to weaken, further eroding cost support for second-life products from the raw material side. Due to the lag in industry chain transmission, finished product prices have not yet adjusted in tandem with raw materials. On the supply side, the pace of shipments remained normal, with smooth circulation of market supply and no extreme situations such as concentrated sell-offs or supply tightening; overall supply was relatively stable. The demand side was generally weak, as ongoing industry compliance rectification continued to dampen downstream purchasing enthusiasm, with most buyers making just-in-time procurement based on rigid demand, and new order follow-through in the market remained sluggish. In the short term, if raw material prices on the cost side continue to decline, overall prices of second-life application products will face downward pressure, with the possibility of an across-the-board decline, and wait-and-see sentiment in the market may further intensify.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lyu Yanlin 021-20707875

Lei Yue 021-20707873