[2019.06.03 minutes of internal morning meeting of cobalt-lithium new energy] downstream market enters adjustment period cobalt and lithium prices both go down

SMM, June 3 / PRNewswire-Asianet /-

Battery Terminal Market:

In June, the transition period of new energy subsidies is coming to an end, and the industry has entered a period of adjustment. Some models have been raised since February this year to maintain costs, which will also directly affect the market sales pattern of the industry. According to SMM, since mid-May, a number of power battery companies have gradually reduced demand for cathode materials and advanced technical upgrades for next year's subsidy policy. We expect the power industry to perform smoothly or even poorly in the third quarter and may improve in the fourth quarter.

Upstream raw material price:

Cobalt: last week, foreign media increased their decline to follow up on domestic cobalt prices, stimulating domestic mainstream producers to adjust their mentality in the face of depressed consumption, and the quotations were also further adjusted downward in order to promote downstream buying, although large single customers are still pessimistic about the future situation. Procurement will take time, but rigid demand buyers have the right amount of replenishment behavior. Zambia cobalt imports are not magnified, the holding cost of individual traders is on the high side, although in the face of a decline at home and abroad, but still insist on the offer, with a view to the acceptance of direct users.

Lithium: battery-grade lithium carbonate price center of gravity moved down, according to the manufacturer's reaction, the market spot 79000 yuan / ton transaction has been very little, there is also or for the implementation of previous orders. Now the price of battery-grade lithium carbonate in small and medium-sized production enterprises is increasing at 75000 yuan / ton. As we mentioned earlier, the price of battery-grade lithium carbonate will begin to fall in early June. Orders for industrial lithium carbonate are slightly better than battery-grade lithium carbonate, but given the release of industrial lithium carbonate in Qinghai in the summer, we expect prices for industrial lithium carbonate to start falling this month.

SMM Cobalt Lithium Research team

Hu Yan 021 51666809

Hong Lu 021 51666814

Ning Ziwei 021 51666780

Qin Jingjing 021 51666828

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