[2020.07.16 Morning meeting Summary of Cobalt Lithium New Energy] the structure of supply and demand to improve the price of cobalt products may rebound slightly

SMM, July 16:

Battery terminal market:

From the perspective of the power market, on July 15, the Ministry of Industry and Information Technology and other three departments issued the notice on carrying out New Energy vehicle activities to the Countryside, which will cover 16 new energy vehicle products from 10 new energy vehicle production enterprises. among them are basically short-range, A00-class models, with strong price concessions, which are more suitable for rural areas. The event, which runs from July to December 2020, is expected to drive sales of new energy vehicles in the second half of the year. In addition, some models, such as SAIC GM Wuling, which use iron lithium batteries, are expected to continue to increase the proportion of iron lithium in passenger cars.

Price of upstream raw materials:

Cobalt: the uncertainty of cobalt raw materials is still there, the downstream demand is gradually picking up, and the prices of cobalt series products are about to rebound. Cobalt sulfate inventory consumption, supply and demand will be balanced, this week cobalt sulfate suppliers below 45000 yuan / ton basically have no intention to ship; cobalt chloride, cobalt tetroxide downstream procurement demand increased, quotations are also raised.

Lithium: at present, the spot transaction of lithium carbonate market has not improved obviously. Large manufacturers guarantee shipments and cash flow by signing long orders or processing orders. With the increase of industry concentration in the future, it may be a trend to bind directly to the downstream of the terminal. The current market price is relatively stable, industrial carbon manufacturers have a strong willingness to raise prices, electric carbon manufacturers are not optimistic about the price rise for the time being, and the downstream bargaining power is still there.

Cathode materials and precursors: ternary materials and precursors, there are not many transactions this week, cobalt salt, nickel salt prices rise, downstream demand continues to increase, is expected to lead to a corresponding increase in the price of precursors and ternary materials. From the point of view of lithium iron phosphate, the downstream power and energy storage market increased greatly in August, but the bargaining power of the seller's market is weak, the market competition is fierce, and the price can only be raised with the price of raw materials.

Nickel: the intention of the nickel sulfate factory is strong this week. On the one hand, because the nickel price continues to rise in the first half of July, the cost of nickel sulfate rises with the nickel price and has limited room to fall in the short term; on the other hand, nickel sulfate has gone to the warehouse for two months in a row. It is expected to continue to go to the warehouse in July, and the inventory of most nickel sulfate plants this week is small or has bottomed out, which has a strong support for the price of nickel sulfate. Today, the mainstream price of battery-grade nickel sulfate is 24000 yuan / ton, and the market transaction price is 2.35-24000 yuan / ton (crystal / including the acceptance price for a one-month account period).

News:

1. [Tesla adjusts Model Y production and sales Plan] Tesla, the US electric car maker, said recently that it would cancel the production of the lower standard mileage crossover model Model Y and reduce the price of the long mileage Model Y by $3000 to boost sales. Some analysts pointed out that the price reduction of, Model Y and the cancellation of the standard mileage version production plan show a decline in demand related to the US market, and Tesla may need further price cuts in order to promote the rise in demand for Model Y.

2. [LG Chemical Global share Chao Ningde era: 870 billion orders have been busy for the next five years] Korean battery manufacturer LG Chemical said recently that it currently has 150 trillion won (872.5 billion yuan) worth of orders, which will keep it busy for the next five years and will help it survive the pandemic crisis. In addition, the strong performance of LG Chemical has made it a leader in the battery industry this year, surpassing the Ningde era in global market share.

3. [Ministry of Industry and Information Technology, Ministry of Agriculture, Agriculture and Village, and Ministry of Commerce jointly organized activities for new energy vehicles to the countryside] according to the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology, the Ministry of Agriculture and Village, and the Ministry of Commerce jointly organized activities for new energy vehicles to the countryside to promote the promotion and application of new energy vehicles in rural areas, guide rural residents to upgrade their travel modes, and promote the strategy of beautiful rural construction and rural revitalization. The event will take place from July to December 2020, with participating automobile companies including Great Wall Motor, BYD shares and so on.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898