[SMM Cobalt Lithium spot Weekly report (0629mur0703)] it will take time for power batteries to recover their operating rate in July and transfer demand upstream.

SMM, July 3:

Battery and downstream terminal market: the operating rate of the power battery factory in July was basically higher than that in June, with an average month-on-month increase of 15%. The production schedule of a head battery factory is planned to increase by 30% Mel 40% month-on-month, mainly due to the resumption of overseas high nickel orders and the increased demand for iron and lithium in the domestic car market. In terms of the small power market, the domestic market for two-wheelers and power tools continues to be hot, and some battery factories are close to full production. As the digital market has entered the off-season, battery factories will relatively reduce their production capacity and are expected to recover at the end of August and early September.

Electrolytic cobalt and cobalt hydroxide: the price of electrolytic cobalt fell this week. Overseas electrolytic cobalt prices continue to weaken, domestic electrolytic cobalt parties are more willing to ship, major electrolytic cobalt suppliers have lowered their quotations, the market transaction price has dropped to 230000 yuan / ton, there is a little 22-230000 yuan / ton price. Downstream superalloy, magnetic materials and other market demand is weak, the purchase intention is low, the market is bearish in the future. The price of cobalt intermediate products this week is the same as last week. This week cobalt intermediate spot market quotation is still at 10.3 US dollars / pound, the spot market is lighter than the earlier period, the transaction is sporadic, and the price is stable for the time being. Cobalt raw materials have arrived in Hong Kong to the factory, the spot demand is reduced, cobalt intermediate products spot or gradually downward. The price of SMM electrolytic cobalt this week is 23-245000 yuan / ton, the average price is 7500 yuan / ton lower than last week. The price of SMM cobalt hydroxide is $9.8 / lb, the average price is the same as last week.

Cobalt and nickel salts: cobalt chloride prices fell this week. This week, cobalt salt transactions were deserted, cobalt sulfate demanders basically did not purchase, market transactions were sporadic, and prices were temporarily stable; cobalt chloride downstream demanders were not active in purchasing, and downstream cobalt tetroxide prices fell, and cobalt chloride prices were difficult to maintain. the mainstream transaction price basically fell to 5.3-54000 yuan / ton. The price of cobalt sulfate in SMM this week is 4.45-47000 yuan / ton, the average price is the same as last week. The current price of SMM cobalt chloride is 5.35-56000 yuan / ton, the average price is 1000 yuan / ton lower than last week. The price of SMM battery-grade nickel sulfate is 2.27-23000 yuan / ton, the average price is 50 yuan / ton lower than last week.

Cobalt tetroxide: the price of cobalt oxide fell on Thursday. This week, the quotations of some cobalt tetroxide suppliers have been lowered to 17.3-175000 yuan / ton, the downstream psychological price has fallen to less than 170000 yuan / ton, the mainstream transaction price is more than 172000 yuan / ton, a little 16.8-171000 yuan / ton. 3C battery factory price reduction, lithium cobalt oxide manufacturers purchase cobalt tetroxide psychological price continues to decline, cobalt tetroxide transaction price is expected to continue to decline. The current price of cobalt tetroxide in SMM this week is 17.2-177000 yuan / ton, which is 2500 yuan / ton lower than that of last week.

Ternary precursor: the price of the precursor remains unchanged this Wednesday. The prices of cobalt salts and nickel salts are basically unchanged this week, and transactions have increased after the holiday. The prices of precursors have increased by 2000 won 3000 yuan / ton, but the actual transaction prices are still low, and the demand for power market has not increased significantly. The price of power precursors may go down slowly in the short term. In addition, with fierce competition in the digital market, transaction prices of precursors have begun to decline slightly. The price of SMM ternary precursor (523) is 7.1-73000 yuan / ton this week, the average price is the same as last week. The price of SMM ternary precursor is 7.3-75500 yuan / ton, the average price is the same as last week. The price of SMM ternary precursor (622) is 7.8-80500 yuan / ton, the average price is the same as last week. The price of SMM ternary precursor (811) is 9.05-95000 yuan / ton, the average price is the same as last week.

Lithium carbonate: the price of battery-grade lithium carbonate fell this week. The mainstream enterprises in Qinghai have a clear willingness to raise prices in the near future, the price of industrial carbon is short and stable, and the rest of the enterprises are still facing high inventory pressure and strong willingness to ship goods. When there is no clear signal of recovery in demand, it is difficult to adjust the price of lithium carbonate, and the buyer will still buy at a lower price. There is no obvious recovery in the scheduling of conventional ternary materials, the demand for battery-grade lithium carbonate is limited, the demand for superimposed purification enterprises is increasing, the pressure of oversupply in the market is still there, and the price pressure is obvious. The price of SMM battery-grade lithium carbonate this week is 3.9-41000 yuan / ton, down 500 yuan / ton from last week. The price of SMM industrial grade zero lithium carbonate is 3.15-37000 yuan / ton, the average price is the same as last week.

Lithium hydroxide: lithium hydroxide prices are flat this week. Lithium hydroxide leading manufacturers increase production after sufficient supply, the overall domestic demand is concentrated, with overseas orders may decline slightly in the third quarter, battery-grade lithium hydroxide prices still have room for a slight reduction in the future. The price of SMM battery-grade lithium hydroxide (coarse particles) is 4.7-52000 yuan / ton this week, the average price is the same as last week. The price of SMM industrial grade lithium hydroxide is 4.2-45000 yuan / ton, the average price is the same as last week.

Lithium cobalt: the price of lithium cobalt fell this week. This week, lithium cobalt suppliers lowered their quotations, 3C battery manufacturers reported that orders remained stable month-on-month in July, and the purchase price of lithium cobalt fell. Lithium cobalt single transactions sporadic, 3C battery factory prices, cobalt lithium raw material prices also began to decline, lithium cobalt prices under pressure, there is still a downward trend. The price of SMM4.35V lithium cobalt is 19.1-196000 yuan / ton this week, down 1000 yuan / ton from last week.

Ternary material: the price of ternary material is the same this week. The price of precursor remains unchanged this week, the price of electricity and carbon dropped slightly, and the production schedule of the power battery factory increased in July, but the inventory of raw materials in the battery factory was higher and the purchase of ternary materials was lower than expected. At present, the purchase volume of high nickel has increased significantly, and the demand for 5 and 6 series products has only increased slightly. The price of the upstream precursor is temporarily strong, with the quotation rising by 2000 Mel 3000 yuan / ton, the actual transaction price is basically unchanged, and the price of power ternary materials is maintained. The price of SMM ternary material (523) is 11-116500 yuan / ton this week, the average price is the same as last week. The price of SMM ternary material (622) is 13-137500 yuan / ton, the average price is the same as last week. The price of SMM ternary material (type 811) is 14.7-160000 yuan per ton, the average price is the same as last week.

Lithium iron phosphate: the price of lithium iron phosphate fell slightly this week. The price of lithium carbonate is basically stable this week, the demand for lithium iron in the head power battery factory has increased, and the purchase quantity in July is higher than that in June, but the battery factory has strong bargaining power, and the price of iron and lithium continues to be under pressure. In the energy storage market, the bidding for 5G base stations has been completed, and battery factories have purchased iron lithium materials one after another. the energy storage market has low requirements for the quality of iron lithium, and the market competition is fierce. The price of some manufacturers using iron phosphate raw materials has dropped to less than 30,000 yuan / ton. This week's SMM lithium iron phosphate (power type) price is 3.45-37000 yuan / ton, the average price is 250 yuan / ton lower than last week. The price of SMM lithium iron phosphate (energy storage type) is 2.8-33500 yuan / ton, the average price is the same as last week.

Lithium manganate: the price of lithium manganate remains unchanged this week. Industrial carbon prices remain unchanged this week, trading volume has increased recently, and overseas exports are mostly dependent on the Indian market. Indian exports have been seriously hindered by the epidemic and Sino-Indian relations. The domestic market has recovered slightly, but July and August are off-season, and the market demand is general. Some lithium manganate manufacturers have reduced their production capacity and are expected to wait for September and October to return to normal. This week's SMM lithium manganate (capacity type) price is 2.1-28000 yuan / ton, the average price is the same as last week. The price of SMM lithium manganate (power type) is 3.3-35500 yuan / ton, the average price is the same as last week.

Negative materials: the prices of artificial graphite and natural graphite are the same this week. The price of raw material needle coke fell slightly, the market transaction is general, the increase of battery factory scheduling plan has not yet been transmitted to the negative market, the purchase quantity of raw materials is not high, and the price is relatively stable. This week SMM artificial graphite (high-end) price is 75-80 thousand yuan / ton, SMM artificial graphite (middle-end) price is 65-70 thousand yuan / ton, the average price is the same as last week. SMM natural graphite (high-end) price is 50-60, 000 yuan / ton, SMM natural graphite (middle-end) price is 30-40, 000 yuan / ton, the average price is the same as last week.

Diaphragm: the price of diaphragm is flat this week. The price of diaphragm is stable, the export order of power battery increases slightly, and the purchase quantity of diaphragm may continue to increase. This week, the price of SMM wet base membrane (5 μ m) is 2.5 yuan / square meter, the price of SMM wet base membrane (7 μ m) is 1.8mur2.2 yuan / square meter, and the price of SMM wet base membrane (9 μ m) is 1.2mur1.5 yuan / square meter, all of which are the same as last week. The price of SMM dry base film (16 μ m) is 0.9mur1 yuan / square meter, the average price is the same as last week. The price of SMM wet coating base film (5 μ m + 2 μ m) is 3mur3.8 yuan / square meter, the price of SMM wet coating base film (7 μ m + 2 μ m) is 2.2 million yuan / square meter, and the price of SMM wet coating base film (9 μ m + 3 μ m) is 1.8 million yuan / square meter, the average price is the same as last week.

Electrolyte: the price of electrolyte is flat this week. The demand for ternary battery recovers slowly, the downstream purchasing willingness is limited, the demand for lithium iron phosphate battery is relatively stable, and the market price of electrolyte remains stable with little fluctuation. This week, the price of SMM electrolyte (ternary power) is 3.5-45000 yuan / ton, SMM electrolyte (lithium iron phosphate) is 3-35000 yuan / ton, SMM electrolyte (lithium cobalt) is 50-60 thousand yuan / ton, SMM electrolyte (lithium manganate) is 1.5-25000 yuan / ton, the average price is the same as last week.

Future forecast: cobalt raw materials are arriving in Hong Kong one after another, the demand for cobalt sulfate remains weak, and the price may continue to decline slowly in the future. In terms of lithium, the recent shipments of large factories in Qinghai have been smooth, and the price of industrial carbon has been temporarily stable, but the market as a whole is still in a state of oversupply, and some enterprises are eager to ship goods due to high inventory pressure, so it is difficult to adjust the price. The stabilization of raw material prices still need to wait for the recovery of demand in the future terminal market.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898