【SMM Analysis】Subdued Downstream Pick-Up Sentiment for Ternary Cathode Materials

This week, ternary cathode material prices edged higher. On the raw material front, nickel sulfate rose slightly, cobalt sulfate edged down, manganese sulfate held steady, while lithium carbonate and lithium hydroxide showed an upward trend amidst volatility.

In terms of transactions, with raw material prices remaining at high levels and fluctuating, battery cell manufacturers currently have sufficient inventory levels and no urgent need for pick-ups. They are largely continuing to execute orders signed when raw material prices were lower, waiting for opportunities when prices may correct. Payable levels remained stable, with no significant changes in the past two weeks.

On the demand side, the domestic EV market showed modest signs of recovery. Upcoming new model launches at this week's auto show are expected to provide some impetus to future demand. The consumer market, however, remained relatively subdued. Overseas orders have declined compared to March following the conclusion of the export rebate policy.

With the May Day holiday approaching, some cathode manufacturers have restocking needs for raw materials, which is expected to provide support to raw material prices at the end of the month. However, downstream battery cell manufacturers still have limited acceptance of price increases. The specific price trend will still need to focus on manufacturers' restocking situations at the end of the month.