[SMM Analysis] A Review of This Week's Scrap Spot Price Trends (2025-03-17, 2025-03-21)

SMM Analysis: A Review of This Week's Scrap Spot Price Trends (2025.3.10-2025.3.13) Supply Side: This week, as the price increases of products such as nickel and cobalt salts slowed down or even declined slightly, the prices of ternary and LCO black mass also fell slightly. However, on the supply side, grinding mills and traders' psychological selling prices did not decrease. The coefficients for LCO and ternary pole piece black mass remained basically stable this week. For example, the current coefficient for LCO and ternary pole piece black mass was around 77-79%, with an average coefficient of 78%. The current coefficient for ternary pole piece black mass was 75-78, with an average of 76.5%. On the demand side, most downstream entities were not optimistic about the continued rise in cobalt salt prices, and the proportion of pure cobalt scrap in the market was less than 10%, with lithium iron phosphate still being the main component. There were relatively few companies purchasing pure cobalt scrap compared to those buying ternary black mass. In a situation where they could also choose ternary black mass, most companies adopted a wait-and-see attitude towards the rising coefficients of pure cobalt scrap. On the supply side, LCO scrap accounted for a relatively small portion of the overall scrap market, making it scarce, with limited supplies mostly concentrated in the hands of traders. Under the condition of continuously high cobalt salt prices, many companies chose to hold back from selling or sell at high prices in small quantities. Cost Side: This week, the prices of cobalt and nickel salts began to decline slightly, but the previous increases had to some extent restored the costs and profitability of the grinding end for ternary and pure cobalt scrap. Currently, the profit margins for wet-process LCO scrap and ternary scrap hovered around the cost line. However, due to insufficient market supply and the inability of most companies to buy and sell scrap and salt products immediately, some small and medium-sized wet-process enterprises still reported being in a loss-making situation.