[2019.07.04 Cobalt Lithium New Energy Internal Morning meeting Summary] large area reduction in Cobalt Lithium production of Power batteries prices fell across the board

SMM 04 / 07 / 04 / PRNewswire-Asianet /-

Battery Terminal Market:

The power battery market has seen a large reduction in production since June. On the demand side, the downstream market entered a period of downturn, and the growth rate of new energy vehicles slowed down in the second quarter, affected by the decline of subsidized slopes and the removal of "national five" models to the warehouse. In May, the year-on-year growth rate of new energy vehicles reached its lowest point in recent years. After the formal end of the subsidy transition period on June 25, some models will plan to adjust prices, and the high temperature leave of the mainframe factory in July and August will affect some production, and the overall market situation is expected to remain depressed in the third quarter.

Upstream raw material price:

Cobalt: this week, the domestic cobalt market prices fell significantly, metal cobalt and derivatives fell across the board, last night foreign media quotations hit a new low in 2019, fell through the psychological defense line of some market people, pessimism ferments strongly. SMM expects the cobalt market trading price to be low or 170000 yuan per ton in the short term, and the cobalt premium will continue to narrow.

Lithium: demand for battery-grade lithium carbonate has fallen sharply recently. In response to market changes, businesses have chosen to cut prices. Compared with battery-grade lithium carbonate, the demand for industrial-grade lithium carbonate has also weakened, but the change is not as obvious as the demand for battery-grade lithium carbonate. Some battery-grade lithium carbonate manufacturers are also trying to make production adjustments to increase the share of industrial lithium carbonate sales to maintain production. Lithium iron phosphate: power lithium iron phosphate production enterprises said that due to the impact of production cuts in enterprises C and B, orders were significantly reduced in June. Orders are expected to be slightly better in July than in the previous month, but overall performance in the third quarter was disappointing. For the order performance of lithium iron phosphate, the overall performance is relatively stable.

SMM Cobalt Lithium Research team

Hong Lu 021 51666814

Ning Ziwei 021 51666780

Qin Jingjing 021 51666828

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