【SMM Analysis】 During the traditional peak sales month, the ternary cathode precursor market became relatively active in China

This week, the prices of ternary cathode precursor fluctuated. The SMM NCM-5 series ternary precursor (poly-crystal/consumable type) price was 64,000-66,000 yuan/mt, and the NCM-5 series ternary precursor（single-crystal/power type) price was 65,000-66,500 yuan/mt. The SMM NCM-6 series ternary precursor (poly-crystal/consumable type) price was 71,000-72,000 yuan/mt, and the NCM-6 series ternary precursor (single-crystal/power type) price was 65,000-67,000 yuan/mt. The SMM NCM-8 series ternary precursor (poly-crystal/consumable type) price was 82,500-84,000 yuan/mt, and the NCM-8 series ternary precursor (poly-crystal/power type) price was 81,500-84,000 yuan/mt.

Cost side, nickel sulfate price continued to rise this week, with an increase of 250 yuan/mt. Cobalt sulfate prices stabilised after a decrease of 50 yuan/mt on Monday, and manganese sulfate price remained stable after a decrease of 25 yuan/mt on Monday.

Demand side, with the arrival of the traditional sales peak season, ternary cathode material merchants actively stocked up, and market inquiries and transactions were quite active. Some ternary precursor merchants shared that the September production of ternary cathode precursor would be better than in August, but the overall increase might be lower-than-expected. Supply side, ternary precursor merchants scheduled production based on sales following the procurement situation of cathode material enterprises. The market was still dominated by long-term orders, and the trading volume of spot orders increased recently. Some ternary precursor merchants would selectively accept spot orders based on overall cost profit, cooperation relationships, and other factors. It is expected that nickel sulfate price has a slight upward adjustment space, cobalt sulfate price will remain weak and stable, and ternary cathode precursor price will remain weakly stable.