For the week ending 14 December, ternary cathode precursor prices fell. This decline was driven by some companies offloading stock at reduced rates in anticipation of dropping nickel and cobalt prices, coupled with year-end financial pressures. The ongoing decrease in nickel and cobalt prices undermined cost support for precursor. The general demand from cathode material plants dipped, though certain manufacturers upped their procurement for new project developments. Supply-wise, top precursor producers expected a surge in year-end orders, but actual demand remained low, leading to a continued reduction in December supply. Market forecasts suggest further potential decreases in nickel and cobalt salt prices. Currently, precursor companies are operating at 40% capacity. With heightened price competition anticipated, the trend of declining precursor prices will persist.
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