[SMM Cobalt Lithium spot Weekly] Cobalt salt prices rebounded slightly and the terminal is still in the de-inventory cycle (0722-0726).

SMM, July 27 / PRNewswire-Asianet /-

SMM, July 26 / PRNewswire-Asianet /-

In terms of power batteries, the current market pessimism is hanging over them. In the third quarter, downstream mainframe factories and battery enterprises are making corresponding adjustments to the technical route of the "non-subsidy era." according to SMM, at present, leading battery manufacturers have begun to plan to increase some lithium iron phosphate battery production lines to prepare for next year's production direction. On the one hand, it reflects the advantages of the industry in the safety performance, cycle life and cost advantage of lithium iron phosphate battery in the "non-subsidy era". On the other hand, the industry has not denied the mainstream position of ternary batteries in new energy vehicles in the future. With the complete withdrawal of the subsidy policy, the cost-oriented consumption scenarios of all kinds of power batteries will gradually mature, stabilize and determine in the future. In addition, considering that the downstream production expansion rate in the first half of the year is too fast, the current battery enterprises and cathode material factories are in the process of going to the warehouse, and the high nickel models have already determined the corresponding orders in the first half of the year. According to the industry, the production of high nickel ternary batteries has not been affected by the market depression, and even the demand for high nickel ternary materials has risen steadily.

In terms of consumer batteries, the traditional 3C market is still in the off-season, and there is no obvious recovery in demand. Based on consumers' expectations of new demand for 5G products next year, it is expected that the demand for lithium cobalt acid batteries in the traditional market is still not satisfactory in the second half of the year.

Electrolytic cobalt and cobalt hydroxide: this week cobalt market trading is light, producers and traders quoted price rose, but the downstream cobalt price rebound doubt, the price performance indifferent, mainly to consume pre-inventory. In terms of cobalt hydroxide, the third quarter is the most appropriate time for buyers and sellers to trade in the whole year. Producers are willing to sign long orders, and spot prices fall slowly. The price of SMM electrolytic cobalt is 21.30-225000 yuan / ton, the average price is the same as last week. SMM cobalt hydroxide prices range from $7.5 to $7.70 per pound, down $0.1 per pound from last week.

Cobalt salt and nickel salt: in the first half of the week, traders intended to collect goods positively, producers cherished the selling mood, raised the quotation, although there was an increase in downstream inquiries, but there was no large volume of transactions, and the prices of scattered orders were raised. In the second half of the week, the price of the outer market fell, the market mentality was intertwined, and the price bottomed out. The price of SMM cobalt sulfate is 3.60-38000 yuan / ton, up 1000 yuan / ton from last week. The current price of SMM cobalt chloride is 4.2-44000 yuan / ton, up 1000 yuan / ton from last week. The price of SMM nickel sulfate is 24000-27500 yuan / ton, the average price is the same as last week.

Cobalt oxide: cobalt tetroxide prices continue to be stable, digital electronics demand is stable, manufacturers pull up quotations, but there is no response downstream, trading prices are flat. The current price of SMM cobalt oxide is 14.5-148000 yuan / ton, the average price is the same as last week.

Ternary precursor: the price of ternary precursor rose slightly, which was mainly disturbed by the fluctuation of nickel and cobalt price. Prices from precursor producers rose, but demand did not improve and the deal was difficult to land. The price of SMM ternary precursor (523 type) is 7.1yuan-74000 yuan / ton, the average price is 500 yuan / ton higher than that of last week. The price of SMM ternary precursor (622 type) is 7.7-80 000 yuan / ton, the average price is 500 yuan / ton higher than that of last week.

Lithium carbonate: downstream demand for battery-grade lithium carbonate has not improved and trading is sporadic. At present, most of the buyers mainly complete the long order, and the rest take into account that the current price is still in the downward range and adopt a small number of procurement methods. Due to the considerable growth rate of the downstream terminal consumption market of lithium iron phosphate and lithium manganate and the stable output of materials, the demand for industrial lithium carbonate is supported to a certain extent. According to some lithium carbonate manufacturers, the current prices are in a downward range, taking into account profit margins, do not rule out the possibility of shifting the battery-grade lithium carbonate production line to the production of industrial-grade lithium carbonate. This week, the price of SMM battery-grade lithium carbonate was 67,000 yuan / ton, down 2500 yuan / ton from last week. This week, the price of zero-grade lithium carbonate in SMM industry was 6.2-64000 yuan / ton, down 500 yuan / ton from last week.

Lithium hydroxide: downstream high nickel development progress is not as expected, battery-grade lithium hydroxide demand is not good, the transaction is rare. This week, the price of SMM battery grade lithium hydroxide (coarse particles) is 7.5-79000 yuan / ton, the average price is 2500 yuan / ton lower than last week.

Lithium cobalt acid: lithium cobalt acid transaction is OK, leading battery factory purchase rhythm is stable, part of the three manufacturers to protect the start-up rate, conversion to lithium cobalt acid. The price of SMM4.35V lithium cobalt acid is 18.5-195000 yuan / ton, the average price is the same as last week.

Ternary material: battery enterprise start-up rate recovery progress is slow, in addition to high nickel ternary material demand is stable, other product orders are scarce, this week the material factory is still mainly out of stock. The price of SMM ternary material (523 type) is 12.5-133000 yuan / ton, the average price is the same as last week. The price of SMM ternary material (type 622) is 14.1-148000 yuan / ton, the average price is the same as last week.

Lithium iron phosphate (power type): the price of lithium iron phosphate is flat this week. Affected by the poor operating rate of the upstream power battery plant, the shipment of power lithium iron phosphate is limited this week, but slightly higher than that of volume lithium iron phosphate. On the cost side, yellow phosphorus prices are still high this week, but due to terminal demand has not yet improved, cost transmission is more difficult, and considering that lithium carbonate prices are also in the downward range, lithium iron phosphate price power is insufficient. This week, the price of SMM lithium iron phosphate (power type) is 4.6-49000 yuan / ton, the average price is the same as last week.

Lithium manganate: lithium manganate trading this week is stable, volume and power prices are slightly lower. Volume lithium manganate although the terminal consumer market demand growth is considerable, but due to the extrusion of other dynamic materials, the market competition is fierce, the phenomenon of low price throwing occurs frequently. Due to the limited demand for power lithium manganate, the price is dragged down by the volume lithium manganate, and the market quotation is also slightly reduced. This week SMM lithium manganate (volume type) price is 2.9-36000 yuan / ton, the average price is down 500 yuan / ton compared with last week. The price of SMM lithium manganate this week was 4.6-48000 yuan / ton, down 1000 yuan / ton from last week.

Future forecast: cobalt smelter suppliers intend to raise prices this week, but downstream is still in the inventory cycle, fundamentals are difficult to support a sharp rebound in prices, cobalt salt prices after a small rebound to build the bottom. SMM expects cobalt prices to continue to bottom under weak demand, with lithium prices likely to continue to fall.

SMM Cobalt Lithium Research team

Hong Lu 021 51666814

Qin Jingjing 021 51666828