[SMM Analysis] Sulphate Prices Soft, Precursor Prices Still under Pressure

This week, ternary cathode precursor prices weakened. Nickel sulphate and cobalt sulphate prices edged lower, while manganese sulphate prices remained stable.

Regarding discounts, for orders in July and Q3, as sulphate raw materials are relatively tight, some producers are looking to raise discounts. Regarding long-term contracts, some producers' long-term contracts were agreed upon at the beginning of the year, and coefficients have not yet been raised. For quarterly contracts, downstream buyers are also showing weak acceptance of coefficient increases. Regarding spot orders, nickel and cobalt payables for some consumer-related spot orders rose in June, but recently nickel and cobalt salt prices have been relatively weak, and coefficients for July orders are generally under pressure.

On the production side, top-tier producers' export orders continued to perform well this month, with production schedules at relatively high levels. However, some other producers reduced their production loads due to the accumulation of finished product inventories as downstream customers controlled inventory at mid-year.

Looking ahead, sulphate prices have recently pulled back overall, and the pricing of new orders going forward will need to watch the pace of downstream stockpiling in Q3.