[2020.05.18 Morning meeting Summary of Cobalt Lithium New Energy] Terminal car companies demand recovery slow upstream lithium salt manufacturers may adjust operating rate

SMM, May 18:

Battery terminal market:

In terms of the power market, overseas car companies in Europe and the United States have recently begun to resume work. Due to their slow resumption of work and sufficient stock of superimposed batteries, the operating rate of the global head battery plant has not yet resumed. In the domestic market, the installed capacity of ternary batteries rose 18.7% in April from the previous month, but the output of ternary batteries decreased by 11.7%. The recovery of the domestic power market is slow, and the inventory of ternary batteries is still on the high side.

Price of upstream raw materials:

Cobalt: according to SMM research and customs data, domestic smelters have insufficient stocks of cobalt raw materials in early June, but there are more cobalt salts and cobalt tetroxide products. At present, cobalt salt and cobalt tetroxide manufacturers are still willing to raise the price, and the price may have room for further rise, but the range is relatively small. This week is still a game between upstream and downstream, downstream power demand has not yet warmed up, 3C demand is lower than April or slightly, the recent price rise is essentially only caused by cost support, raw material shortage, not driven by downstream demand, so the increase is relatively small.

Lithium: domestic lithium salt transactions are sporadic, enterprises generally feel pressure, but due to the current supply and demand structure is extremely unbalanced, lithium carbonate transaction price continues to be under pressure. SMM believes that the current lithium carbonate price has entered a cyclical bottom range. Due to the high inventory of ore and finished products and the lack of willingness of enterprises to enter the mine, some lithium salt factories have begun to reduce the operating rate or stop shipping. In the future, we will continue to pay attention to the operating rate of various lithium salt plants.

Cathode materials and precursors: at present, the power market is weak, the order quantity of ternary materials is reduced, and the purchase quantity of precursors is even lower. Domestic cobalt salt is willing to stand up, and the price of nickel salt remains unchanged, but the downstream demand is weak, and the prices of ternary precursors and materials are difficult to rise and remain low.

Nickel: the market price of electrolytic nickel has begun to fluctuate and adjust. Although the operating rate of nickel sulfate suppliers has increased, the recent transactions in the ternary precursor market are sporadic, and the downstream purchasing intention is relatively low. The market price has not been adjusted for the time being, and the current price is still hovering around 23500 yuan / ton.

News:

1. [Nandu Power won the bid for China Mobile 158 million Lithium Iron Phosphate Battery Purchasing Project] on May 15, Nandu Power (300068) announced that the company had won the bid for China Mobile's centralized procurement of lithium iron phosphate battery products for communications in 2020. The company's bid price is 1.359 billion yuan (excluding tax), the winning share is 11.59%, and the corresponding winning amount is about 158 million yuan (excluding tax).

2. [Anhui Taineng: China's first 200PPM high-speed 21700 lithium battery product] May 14, in Anhui Maanshan Economic and technological Development Zone Anhui Taineng new energy battery production base, Anhui Taineng 10GWH lithium battery project phase I 2GWH was officially completed and put into production, which is the first 200PPM high-speed 21700 cylindrical lithium battery product offline. The target market of Anhui Taineng is divided into new energy vehicle market, two-wheel electric vehicle, smart home appliance and other small power market and energy storage market, in which the new energy vehicle market adopts 21700-5.0Ah high nickel products used by the company's vehicle regulation power application, the small power market adopts the company's cost-effective 21700-4.0Ah ternary products, and the energy storage market adopts 21700-3.0Ah iron lithium phosphate products.

SMM battery materials research team

Lin Fangwen 021Mui 51666678

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898

Wu Yang 021 51666818