SHANGHAI, Aug 15 (SMM) –
In July, China's production of ternary cathode materials modestly rose by 3% month-over-month and year-over-year, totaling 56,967 mt. In the power battery sector, while the overseas market remained sluggish, domestic demand experienced a slight rebound, leading to an incremental increase in total power battery orders. From the consumption perspective, the traditional off-season, coupled with substantial prior stockpiling and falling lithium prices, resulted in a gradual decrease in downstream procurement orders. Driven predominantly by the power battery demand, the operation rate of ternary cathode materials production experienced a slight uptick. Notably, the effect of order concentration at top-tier manufacturers was significant, leading to stable or increased operations, while small- and medium-sized enterprises either maintained their output or slightly declined. In terms of series, primarily influenced by end-user demand, the proportion of Series 5 ternary cathode materials experienced a minor decline, while Series 6 and 8 saw a slight increase.
Heading into August, the decline in lithium prices accelerated. Given the strong downward expectations in consumer orders and the steady performance of the power battery sector, a slight decrease in the operation rate of ternary cathode materials production was anticipated. In August, China's production of ternary cathode materials may amount to 55,017 mt, marking a 3% decrease month-on-month and a 6% drop year-on-year.
From January to July, the cumulative production of ternary cathode materials in China reached 344,441 mt, reflecting a 1% increase year-on-year.
