[SMM Analysis] PCAM prices edge down amid tepid downstream demand recovery

This week, ternary cathode precursor prices edged down. Today, nickel sulphate prices rose slightly, cobalt sulphate prices dipped marginally, and manganese sulphate prices held steady.

Payables side, for April and Q2 orders, some producers were willing to raise discounts due to significant raw material price fluctuations. Long-term contract side, some producers recently negotiated long-term contracts. Some producers saw slight increases in nickel and cobalt discounts, while others may have had some room for negotiation on processing fees. However, as downstream acceptance of high-priced raw materials remained weak, the overall upside room for coefficients is expected to be limited. Spot order side, cobalt and manganese coefficients generally held stable in April. Downstream purchasing sentiment was weak, and further rises are expected to be difficult. If nickel prices strengthen further, nickel coefficients may have some room to rise.