[SMM Analysis] Cobalt Price continues to fall, causing Market panic and anxiety to start "Changping" saw

SMM: cobalt prices continued to fall last week, after a sharp decline on May 2, cobalt prices seem to have never recovered.

In just two days, cobalt prices, which have been rising for nearly two years, suddenly fell 30, 000 yuan per ton, by 4.5 percent, closing at 632500 yuan per ton from the original 662500 yuan per ton. From February 2 to 4, the share price of Huayu Cobalt, the leading cobalt industry, fell to 99.59 yuan from 113.73 yuan in three days, a total decline of 12 percent. Over the same period, Hanrui Cobalt shares fell from 166 to 147, a total decline of 11.4%;

According to the feedback from the stock market, after such a setback, the share prices of the relevant cobalt companies have rebounded, for example, Huayu Cobalt Industry rose 2.63% on May 7, and Cold Cobalt Industry rose 3.76% on the same day.

But compared with the cobalt price, which is still fluctuating and falling, it seems that the rise in the stock market will not calm the loss of confidence in the cobalt price.

As far as SMM understands, the panic in the domestic market comes to a certain extent from the continuous decline in foreign media quotations, and the loss of speculators' confidence in cobalt prices in the domestic market has further expanded the decline in the entire speculative market. A large number of spot suppliers are affected and face great price pressure.

At the same time, for downstream manufacturers, it is expected that prices will be cheaper in the future when prices continue to plummet. therefore, they are more reluctant to buy in the current period. the reduction of downstream demand and the killing and fall of market speculators have dealt a double blow to suppliers.

"View details:" [SMM Cobalt Lithium spot Weekly] downstream orders for insufficient Cobalt Lithium prices continue to decline. "

Although the cobalt market is not optimistic in the short term, but driven by the wave of new energy, it seems that all price obstacles have become floating clouds.

On May 8, South Korea's LG Chemical and Huayu Cobalt Industry Joint Venture signed a contract and the automobile power battery cathode material project officially settled in Wuxi High-tech Zone. The total investment of the project is US $1 billion, the planned production capacity is 100000 tons, and the annual output value is 20 billion yuan. Among them, the first phase has an investment of US $480 million, a registered capital of US $285 million, a capacity planning of 40, 000 tons, and an annual output value of about 7 billion yuan. The project is scheduled to start construction in September, be completed and put into production in September next year, and be officially mass produced in May 2020. "View details

On the morning of May 11, Luoyang Molybdenum shares climbed steadily and rose sharply in the afternoon, rising as much as more than 7 per cent to as high as 8.32 yuan. At the same time, the transaction is extremely active, the current transaction is 1.661 billion yuan, the turnover rate is 1.6%. According to data released by the Federation, sales of 73000 new energy vehicles in April, an increase of 1.5 times over the same period last year, accelerated the development of the industrial chain, stimulating the cobalt plate, an important material for new energy vehicles' power batteries, to pull up in an all-round way. "View details

Encouraged by the flag of fundamentals, domestic cobalt consumption reversed the trend, strong macro confidence support, so that May 11 cobalt prices relative to May 4 only slightly down 10,000 yuan / ton. Compared with the trend of foreign cobalt prices, domestic prices can be counted as having a strong compressive capacity.

As far as SMM understands, all parties are anxious, many empty two sides game, upstream and downstream wait-and-see, at present the entire cobalt city has been in a dormant state, daily empty quotation but few transactions.

This sawing is likely to continue for some time, SMM analysts predict: light trading in the middle of the month, coupled with the decline in cobalt and lithium prices, upstream and downstream will be more wait-and-see mentality. "View details

Word links:

The War of Changping-the strategic decisive battle between Qin and Zhao during the warring States period.

From 53 to 55, Qin led the army in the war with Zhao army in Changping (now northwest of Gaoping City, Jincheng, Shanxi Province), which took place between Zhou Nanwang and Zhou Nanwang in the 53 to 55 years of Zhou Nan Wang's war with Zhao's army in Changping (now northwest of Gaoping City, Jincheng, Shanxi Province). Zhao Jun finally lost the battle, Qin State won into Changping, this war a total of decapitated Zhao Jun about 450000.

This battle is the longest, largest and deadliest war in the Spring and Autumn period and warring States period. just as the ancients talked about the 500-year war in the Eastern Zhou Dynasty, they only pushed Jinyang and Changping, the so-called "Jinyang encirclement, hanging kettle and cooking; Changping war, blood drifting halogen."