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

▼ Nickel sulfate prices are expected to decline modestly in the short term.

Due to the destocking of cell producers, the demand for nickel sulfate has been weakening, resulting in companies proactively lowering prices to increase sales and some companies selling at a loss to retrieve their capital. Nickel sulfate prices have reached the breakeven point, but the price decrease is limited in the short term due to cost support as nickel intermediate prices have not decreased significantly. Additionally, the price gap between nickel sulfate and nickel plates has remarkably increased, leading to the possibility of nickel plate manufacturers purchasing nickel sulfate for production.

▼ Cobalt sulfate prices may continue to drop.

Due to uncertainty regarding future demand, buyers are hesitant to purchase raw materials, and occasional RFQs are being made at prices below Yuan 34,000/tonne. However, smelters are unwilling to sell at a loss, which has resulted in a shortage of low-priced goods on the market, leading to a short-term impasse between buyers and sellers, providing no significant support for the spot market. The lack of improvement in demand and bearish market sentiment has caused cobalt sulfate prices to continue falling, resulting in few trading activities overall.

▼ Lithium compound prices may slightly weaken next week when demand from downstream industries is not strong enough.

Lithium compound prices fell narrowly these days, leading to an improvement in market sentiment and RFQs. Market prices are still lower than the cost line for some holding merchants despite a recovery in demand, resulting in sellers holding firm on prices. There are currently a lack of low-priced goods and no large orders in the market.

▼ Ternary precursor prices are likely to continue falling in the near future.

The demand for ternary precursor has not yet shown signs of improvement, and as a result, the prices keep falling due to intense price competition. Additionally, nickel sulfate prices decline exacerbates the trend.

▼ Ternary cathode material prices are anticipated to decrease along with lithium compound prices.

Most long-term orders for lithium compounds have been canceled with buyers having almost no inventory. This has resulted in ternary cathode material companies shortening their procurement cycles, and the prices are closely following the price movements of lithium compounds. The market sentiment is predominantly bearish in the short term with no signs of improvement.

-- Lithium iron phosphate prices may remain stable in the short term.

The prices for the main raw material, lithium carbonate, have recently rebounded after a continuous fall. The prices have dropped to the support line of some battery and material manufacturers. Although the market sentiment is still bearish somewhat, some traders and material producers may push up the price of lithium carbonate. which will have a positive effect on the lithium iron phosphate market.

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