[SMM Analysis] Weak price performance of nickel and cobalt salts drags down precursor prices

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

Discount side, for July and Q3 orders, as sulphate raw materials were relatively tight and prices stayed firm, some producers intended to increase discounts. Long-term contract side, some producers' long-term contracts were settled at the beginning of the year, and the coefficients have not been raised yet; for quarterly orders, downstream customers also showed weak acceptance of coefficient increases. Spot order side, in June, nickel and cobalt payables for some consumer-related spot orders rose, but recently, nickel and cobalt salt prices were relatively weak, and the coefficients for July orders have not been further increased.

Production side, driven by downstream demand from Europe, South Korea, etc., some producers' export orders performed well; meanwhile, driven by rising raw material prices and improving end-user battery material demand, downstream customers in China were also relatively active in stockpiling, with top-tier producers' production schedules at high levels.

Looking ahead, sulphate prices have pulled back overall recently, and for subsequent new orders, prices will depend on the downstream stockpiling pace in Q3.