[SMM Analysis] Raw Material Coefficients Overall Stable, Cobalt Sulphate Prices Driving Precursor Prices Lower

This week, prices for ternary cathode precursors moved lower, with nickel sulphate prices edging up slightly, cobalt sulphate prices trending lower, and manganese sulphate prices holding steady.

Regarding discounts, for orders in August and Q3, some producers showed a willingness to raise discounts due to high raw material costs for sulphates. On the long-term contract side, terms for some top-tier producers were agreed upon early in the year, so coefficients have yet to be raised. For quarterly contracts, downstream acceptance of higher coefficients was also weak, and overall, discounts remained steady compared to Q2. For spot orders, given that nickel and cobalt salt prices performed relatively weakly recently, coefficients for August orders were largely expected to hold steady compared to July.

On the production side, export orders from top-tier producers continued to perform well this month, with production schedules at high levels, while domestic producers' operating rates also recovered slightly from June.

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