[SMM Analysis] Ternary Cathode September Production Sees Notable Decline

This week, ternary cathode material prices experienced a broad and sharp decline. On the raw material front, nickel sulfate and cobalt sulfate continued their downward trend amid weak downstream purchasing sentiment, while lithium carbonate and lithium hydroxide saw even more pronounced drops.

In terms of transactions, given the significant price declines with no signs of stabilization and the approaching holiday, most manufacturers had already completed restocking and had no substantial replenishment needs. The market was largely in a wait-and-see mode, with transaction sentiment highly cautious this week.

On the demand side, domestic EV market demand remained weak in September, with cathode manufacturers focused on drawing down inventories and showing low enthusiasm for production and raw material procurement, leading to a notable decline in overall production schedules. Overseas EV markets, by contrast, continued to maintain healthy demand. In the consumer market, overall order performance was lackluster amid persistently falling raw material prices.

Looking ahead to October, the domestic EV market is expected to see a modest recovery, though the upside is limited and unlikely to return to the peak levels seen in Q2 and Q3.