[2019.07.22 minutes of internal morning meeting of cobalt lithium new energy] Cobalt salt price falling space limited lithium salt price continues to decline

SMM July 22, 2010:

Battery Terminal Market:

Due to the end of the transition period of the new energy subsidy policy in 2019 and the implementation of the new policy, the downstream mainframe plants have gradually determined the technical routes of various models in the second half of the year. The battery factory told the SMM that battery orders increased slightly in July, and the operation rate of large plants gradually returned to 70%. However, due to the previous positive material factory affected by the battery factory production reduction, cumulative storage is more, in July is still mainly to de-inventory. As far as the technical route in the second half of the year is concerned, some car companies told SMM that safety is still the main consideration, followed by technical parameters such as energy density and mileage. Battery factory said that the current direct choice of high nickel route mainframe plant is still limited, optimistic about the partial model of nickel ternary material in the second half of the year.

Upstream raw material price:

Cobalt: in the first half of last week, the cobalt market continued to be depressed, downstream demand was weak, the market atmosphere was bleak, and trading prices continued to decline. In the second half of the week, affected by the hot money speculation, the futures market changed, the big factory intends to raise the quotation, but the industry is still skeptical about the continued growth, the market for a time wait-and-see atmosphere is strong, trading sporadic. Cobalt hydroxide, large plant inventory pressure is greater, the quotation is no longer strong, transaction prices decline, trading volume is still not significantly improved. Cobalt salt, smelter half a year reported poor performance, and cobalt salt prices are not only in a historical position, but also in many cobalt smelting products in the low, some traders are optimistic about the future market decline space is limited, in the market wind to receive goods. On the supply side, the opening rate of the leading plant has not yet recovered. After the speculative changes, cobalt salt producers sold at a low price in the second half of the week. At present, the cobalt salt metal price is about 170000 yuan.

Lithium: lithium carbonate: battery-grade lithium carbonate downstream demand continues to be depressed, the market transaction enthusiasm is weak. At present, it is known that the bulk purchase price of battery-grade lithium carbonate has reached 6.8-69000 yuan / ton, and more positive material manufacturers say they expect the purchase price to be less than 70, 000 yuan in August. At present, due to the increase of market participants in lithium iron phosphate and lithium manganate, the monthly output is relatively stable, so the price of industrial lithium carbonate (which can be directly used in lithium manganate) is relatively strong, stable at 6.2-65000 yuan / ton, but affected by the decline in battery-grade lithium carbonate prices, more than 99.2% of industrial lithium carbonate prices may be further dragged down. Lithium hydroxide: battery-grade lithium hydroxide procurement demand is light, upstream manufacturers have appeared in order to return funds as soon as possible low-price throwing behavior, manufacturers revealed that downstream demand is weak, even if the price is difficult to sell. If the performance of high nickel in the second half of the year is lower than expected, the price of lithium hydroxide may have room for further decline.

SMM Cobalt Lithium Research team

Hong Lu 021 51666814

Ning Ziwei 021 51666780

Qin Jingjing 021 51666828

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