Ternary cathode precursor prices rose significantly this week. Cost side, supported by cost support, nickel sulphate prices increased notably, while cobalt sulphate and manganese sulphate prices also continued to rise slightly, collectively driving up precursor prices. Discount quotes in the precursor spot order market also increased, with some producers temporarily suspending quotations. Due to sharp fluctuations in raw material prices, market transactions were scarce, with deals mainly focused on rigid demand restocking and long-term agreement order execution.
Regarding long-term agreement negotiations, due to significant uncertainty about future raw material price trends and a stalemate between upstream and downstream parties on commercial terms, some producers decided to forgo signing long-cycle orders and instead opted for short-term (e.g., one-month) orders as a transitional solution, allowing both sides to better cope with market volatility.
Demand side, overall demand pulled back, but orders for medium- and high-nickel materials from leading producers in the EV market remained relatively strong, and the consumer market also exhibited rigid stockpiling demand. Coupled with advance stockpiling ahead of Chinese New Year logistics suspensions, the overall decline in demand was limited. The main constraint currently lies in high raw material costs, with precursor producers facing prominent cost pressure. Ternary cathode precursor prices are expected to have further upside room next week.
