[SMM Analysis] Sulphate prices weaken, precursor prices fall under pressure

This week, ternary cathode precursor prices weakened, with cobalt sulphate, nickel sulphate, and manganese sulphate prices all trending lower during the week.

On discounts, for October and Q4 orders, some producers still intend to hold coefficients firm due to the higher cost of sulphate raw materials earlier in the period. For long-term contracts, some producers had already agreed terms at the start of the year, and most producers have yet to raise coefficients. Downstream acceptance of coefficient increases for quarterly contracts also remains weak, so Q4 long-term contract coefficients are expected to stay stable and in the doldrums. For spot orders, given the relatively weak performance of nickel and cobalt salt prices recently, coupled with soft downstream demand at some producers, October order coefficients are expected to trend lower.

On production, top-tier producers continued to see strong export orders this month, with production schedules at relatively high levels. However, some domestic top-tier producers saw a decline in stockpiling willingness and a notable drop in operating rates, as end-use demand fell short of expectations and key raw materials remained tight. Overall, production schedules showed a sharp downward trend this month.

Looking ahead, sulphate prices have yet to show a clear rebound, and pricing for upcoming new orders will depend on actual downstream demand in Q4.