SMM Output For Ternary Cathode Precursor In July And Forecast For August

SHANGHAI, Aug 14 (SMM) –

In July, the production of ternary cathode precursors in China reached 78,724 mt, marking a 6% increase month-over-month and a 14% increase year-over-year. From January to July, the cumulative output stood at 446,154 mt, reflecting a year-on-year growth of 4%.

The surge in July's output was primarily driven by the industry's leading enterprises, with robust downstream demand for mid-to-high nickel products pushing up operational rates. In contrast, other precursor firms witnessed a marginal month-over-month decline in output for July, with some experiencing a slight downturn post a mid-year spike in June. Internationally, certain cathode firms reduced their high-nickel requirements due to cost-cutting measures. Coupled with summer holidays and prior stockpiling, the demand softened, leading some precursor firms to lower exports and production.

As August began, the influence of leading ternary cathode precursor firms became more pronounced. Owing to their competitive pricing and technological prowess, these firms saw an uptick in demand for specific downstream products, hence further escalating operational rates. However, smaller precursor firms faced a slump in downstream orders, resulting in a steady but slightly weakening production schedule.

In August, the production of ternary cathode precursors in China is projected at 82,648 mt, a 5% increase month-over-month and a 3% increase year-over-year.