Is the recycling price of waste lithium electricity skyrocketing? The impact of Camel's Public response on the Company's Lithium Recycling Business

SMM March 16: as we all know, with the rapid rise in nickel, lithium and other prices, the rising price of power battery recycling has also frequently triggered heated discussion in the industry. Considering that Camel also has a power battery recycling business, some investors recently asked Camel on the interactive platform whether the increase in the price of waste lithium batteries will affect the company's recycling business. Camel replied that at this stage, the rise in lithium battery recycling prices will not have a significant impact on the company's lithium battery recycling business. In the future, the company will ensure the supply of raw materials by improving the upstream and downstream supply chain system.

In addition, the company also explained the pricing rules for lithium battery recycling prices, saying that in lithium battery recycling business, lithium battery recycling prices are determined by comprehensive factors, which mainly depend on the status of batteries when they are decommissioned, the type of batteries and the prices of major raw materials. Although the price of the main raw materials of lithium battery has increased recently, which leads to an increase in the cost of battery recovery, the price of the end products produced after recycling will also increase accordingly.

According to public data, Camel has been committed to building a "green lead-acid battery recycling industry chain" and "new energy lithium battery recycling industry chain". In the future, the company will also complete the construction of power lithium battery recycling and echelon utilization factories as soon as possible, set up recycling channels, and ensure the supply of raw materials through the establishment of upstream and downstream supply chain. Finally, the initial scale of lithium battery cycle industry chain has been formed in China, which has become a new momentum for the company's performance growth.

As a result, Camel shares also continue to lay out in the recycled lead business. By pricing the recovery cost of waste batteries according to the lead price of the metal mesh and the existing inventory, the recycled lead products are mainly used for the production of internal lead-acid batteries, so as to stabilize the supply of raw materials. On the premise of meeting the internal supply, the remaining recycled lead products will be exported, and the pricing principle will be linked to the lead price.

According to the spot price of SMM, the spot price of SMM lead ingots averaged 14975 yuan / ton today, rebounding from yesterday's low.

"Click to view the historical price of lead products.

According to SMM research, the supply side, the recent outbreaks in many places have not had a significant impact on the supply of lead ingots, and some recycled lead enterprises are worried that the freight charges for waste batteries will be blocked in the future, resulting in higher costs and limited production.

On the consumption side, although the performance of orders is mediocre, downstream production recovers as a whole, trading is gradually active, and the accumulation of domestic social inventory of lead ingots is limited. Yesterday, spot lead prices fell below 15000 yuan / ton first-line support, primary lead smelters and traders generally flat water to a small rising water quotation, the actual transaction is limited, the market wait-and-see mood is relatively strong, long-short factors are intertwined. For the future lead price, SMM expects that the short-term lead price may continue to be weak and volatile, and the support of the lower ten thousand five is OK.

From January to February in 2022, Camel's main business has also maintained a momentum of steady development, and the comprehensive capacity utilization rate has far exceeded the same period. So far, the company has ordered more than 10 million handheld batteries.

It is worth mentioning that after investors asked about the company's battery capacity in 2021, Camel shares responded that according to the data disclosed in the 2021 semi-annual report, the company's annual production capacity of automotive lead-acid batteries has reached 35 million KVAH, totaling about 40 million batteries.

Today, Camel shares rose quickly after midday trading, closing at 11.72 yuan per share with an increase of 4.74%. After falling all the way down, Camel shares hit their lowest level since July 2021 at one point in intraday trading today.