A Glance of China Lithium-ion Battery Materials Week 4, May 2023

↘ Nickel sulfate prices may experience a slight decrease shortly.
Demand for nickel sulfate from downstream ternary precursor companies remains stagnant, leading to discounted sales and reduced production among most companies. However, strong intermediate product prices limit short-term declines in nickel sulfate prices. The price difference between nickel plates and nickel sulfate remains small, resulting in moderate purchasing and production of nickel sulfate. Nonetheless, the continuous increase in intermediate product supply suggests a significant downward price potential for nickel sulfate in the medium to long term.

Cobalt sulfate prices outlook
The cobalt sulfate market is experiencing stronger cost support and improved downstream demand with trading companies' hoarding behavior, which leads to more trading activities, prompting smelters to limit sales and raise prices, with offers adjusted to Yuan 37,000-38,000/tonne. However, as the market trend rises, downstream players are cautious about following high prices, causing a decline in new deals. Some industry participants suggest observing future demand, resulting in a stalemate between the upstream and downstream sectors.

Lithium compound prices may fluctuate narrowly in the short term.
Lithium carbonate prices continued to rise in the past recent days. On the supply side, suppliers are holding onto their stocks and pushing for price increases, resulting in a tight availability of low-priced spot goods. On the demand side, buyers are mainly purchasing on rigid demand, and there is a decrease in transaction rates compared to the past period, indicating buyers' growing cautious and rational attitude and fence-sitting approach. Further examination of actual downstream demand is needed.

↘ The prices of ternary precursors are anticipated to decline in the following days.
Downstream demand remains weak with minimal production changes. Destocking and reduced raw material demand persist. The market awaits demand recovery as companies maintain a pessimistic outlook for the second quarter. Leading companies prioritize sales, potentially leading to an overall price decline.

Ternary cathode price outlook
Ternary cathode material demand is stable in the short term but has not recovered. The market remains pessimistic about prospects and awaits demand recovery. Demand for lithium compounds in the market shows no significant increase, resulting in companies prioritizing essential purchases. Smaller companies increase inventory cycles slightly, while medium and large-sized enterprises remain cautious.

Lithium iron phosphate (LFP) prices outlook
LFP manufacturers have consumed raw materials at low levels and purchased lithium carbonate for rigid needs. Strong orders for LFP have accelerated the depletion of lithium compound inventories, leading to a small demand rise. The future trend of lithium carbonate will be influenced by the orders of LFP. End-consumer demand and production plans serve as indicators for the direction of the lithium battery industry chain.

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