[SMM Cobalt Lithium spot Weekly report (0518mur0522)] short-term shortage of cobalt raw materials pushes up the quotation of lithium salt and has limited room for sporadic price decline.

SMM, May 22:

Battery and downstream end market: in the power market, the production of most battery factories and car companies increased this week, but affected by the consumer side, it has not yet returned to the same period last year. In this year's government work report today, the Prime Minister mentioned promoting new energy vehicles, stimulating new consumer demand and promoting industrial upgrading, and looked forward to more local policies to stimulate automobile consumption to boost the new energy market this year. In the consumer market, consumer battery exports account for a relatively high proportion, and are still waiting for customs in major markets such as Europe, the United States and India to lift the ban. Due to the small inventory of consumer battery factories, some battery enterprises have begun to gradually resume work and increase the operating rate. Prepare for export orders next month.

Electrolytic cobalt and cobalt hydroxide: domestic electrolytic cobalt prices rose this week. Electrolytic cobalt market this week due to part of the capital inflow prices continued to rise, individual small demand due to the need to purchase replenishment, market prices rebounded. Producers' quotations have risen sharply due to the shortage of raw materials, but large demanders have ample inventory and the market is not active. Overseas markets remain calm, with few spot transactions. In terms of cobalt hydroxide, order in African ports has not yet been fully restored, although ships have been issued one after another, but it is not expected to reach the domestic market until mid-June. Although overseas cobalt prices are stable, the discount coefficient of cobalt raw materials has risen; some domestic demanders are in urgent need of replenishing raw materials, and the price of spot raw materials in ports has risen sharply. The price of SMM electrolytic cobalt is 24.5-255000 yuan / ton, the average price is 7500 yuan / ton higher than last week. The average price of SMM cobalt hydroxide is $10.4 / lb, up $0.20 / lb from last week.

Cobalt salt and nickel salt: the price of cobalt salt rose this week. The short-term shortage of cobalt raw materials has led to a rise in cobalt salt quotation, cobalt salt manufacturers have few shipments recently, and there are few cobalt salts in circulation in the market. Downstream inquiries are increasing one after another, and cobalt salt factories are more willing to increase prices. This week, cobalt sulfate manufacturers quoted 47-50, 000 yuan / ton, the mainstream transaction price 45-46000 yuan / ton, the current market almost no such transaction price cobalt sulfate products; cobalt chloride manufacturers quoted 57-6 million yuan / ton, the mainstream transaction price of 5.5-56000 yuan / ton. Downstream part of the ternary precursor manufacturers, cobalt tetroxide manufacturers feedback there is still a small part of cobalt salt procurement demand, prices may rise further next week, but the increase space is small. The price of SMM cobalt sulfate is 4.6-48000 yuan / ton, the average price is 1000 yuan / ton higher than last week. The current price of SMM cobalt chloride is 5.5-57500 yuan / ton, with an average price of 1500 yuan / ton higher than last week. The price of SMM battery-grade nickel sulfate is 23,200 million yuan / ton, the average price is 2.5 million yuan / ton lower than last week.

Cobalt tetroxide: the price of cobalt tetroxide rose on Thursday. Cobalt tetroxide traded sporadically this week, downstream lithium cobalt oxide manufacturers increased orders this week, due to the short-term shortage of cobalt raw materials and cobalt salt prices, cobalt tetroxide quotation rose strongly. Some lithium cobalt oxide factory procurement customer feedback, next week or a little cobalt oxide procurement, cobalt oxide prices may continue to rise. The current price of SMM cobalt tetroxide is 17.3-178000 yuan / ton, up 2000 yuan / ton from last week.

Ternary precursor: the price of Yuan precursor rose slightly on Wednesday. Cobalt salt prices have continued to rise this week, nickel prices have also risen, but the downstream of the power market continues to be weak, battery factories are more difficult to accept the price increase, there are fewer orders on the market, and prices have increased slightly. The digital market is greatly affected by overseas, downstream demand has not yet recovered, a number of small and medium-sized enterprises compete for orders, prices continue to be under pressure. The price of SMM ternary precursor (523) is 7.15-73000 yuan / ton, with an average price increase of 250 yuan / ton compared with last week. The price of SMM ternary precursor (622) is 7.8-81000 yuan / ton, the average price is the same as last week.

Lithium carbonate: the price of lithium carbonate fell slightly this week. Lithium salt market inquiry this week compared with the previous slightly increased, but basically based on price comparison, the actual transaction is not ideal. Some enterprises are eager to ship goods, and there are still cases of selling goods at low prices in the market, but the buyer's room for negotiation is narrowed. According to the SMM survey, considering the limited downward space for the price of lithium carbonate in the future, some lithium manganate manufacturers intend to negotiate a long order in the near future. The price of SMM battery-grade lithium carbonate this week is 4.3-44000 yuan / ton, the average price is the same as last week. The price of SMM Industrial Grade Zero Lithium Carbonate this week is 3.3-38500 yuan / ton, down 750 yuan / ton compared with last week.

Lithium hydroxide: low price decline for battery-grade lithium hydroxide this week. The current market demand for high nickel remains low, with domestic lithium hydroxide trading sporadically, except for a slight increase in orders from Tesla's Shanghai factory and an enterprise in central China. At present, the enterprise orders for purchasing micro-powder battery-grade lithium hydroxide in the market are limited, the focus of the leading enterprises is still in the overseas market, and the high price of lithium hydroxide has not been adjusted for the time being; the price of coarse-grained battery-grade lithium hydroxide has been successfully depressed downstream due to poor demand, and the low price has fallen slightly. The price of SMM battery-grade lithium hydroxide (coarse particles) is 5.2-59000 yuan / ton this week, down 500 yuan / ton from last week.

Lithium cobalt: the price of lithium cobalt rose slightly this week. According to customer feedback, domestic orders for lithium cobalt in June are basically the same as in May, and orders in Japan and South Korea in June are basically the same as in May. The current purchase of lithium cobalt in the Indian market will be further postponed to July, so as a whole, lithium cobalt is still in the off-season in June and there is no increase in orders. This week 4.35V lithium cobalt rose to 19.6-200000 yuan / ton, mainly due to the rising price of upstream cobalt raw materials. The transaction is sporadic, the downstream battery factory purchase inquiry order increases, but the acceptance degree to the price rise is low. The price of SMM4.35V lithium cobalt is 19.2-197000 yuan / ton, the average price is 500 yuan / ton higher than last week.

Ternary materials: the price of ternary materials has declined slightly this week. This week, the price of the upstream precursor is still low, lithium carbonate still has a downward trend, battery factories are not willing to purchase, the market competition is fierce, some material factories are forced to cut prices, and the low price of ternary materials has dropped this week. The price of SMM ternary material (523) is 11-118000 yuan / ton, which is 500 yuan / ton lower than that of last week. The price of SMM ternary material (622) is 13-139000 yuan / ton, which is 500 yuan / ton lower than that of last week.

Lithium iron phosphate: the price of lithium iron phosphate fell this week. The price of lithium carbonate fell slightly this week, the power market has not yet picked up, the price of battery factories is seriously depressed, and the price of lithium iron continues to decline. Competition in the energy storage market intensifies, domestic iron lithium plants have overcapacity, and there is a serious imbalance between supply and demand. The price of energy storage iron lithium has been declining all the way, and has recently fallen below 30,000 yuan / ton. This week's SMM lithium iron phosphate (power type) price is 3.5-37000 yuan / ton, the average price is 500 yuan / ton lower than last week.

Lithium manganate: the price of lithium manganate fell this week. The price of lithium carbonate fell slightly this week, overseas markets are not open, and it is difficult to export consumer batteries and consumer goods. Most battery factories cut production by 20% Rose 30%. Some manufacturers stopped production at the end of April, and the price of lithium manganate fell near the cost line. This week's SMM lithium manganate (capacity type) price is 2.15-29000 yuan / ton, the average price is 250 yuan / ton lower than last week. The price of SMM lithium manganate (power type) is 3.35-35500 yuan per ton this week, the average price is the same as last week.

Future forecast: the short-term shortage of cobalt raw materials leads to a rise in cobalt salt quotation, but the market transaction is limited and the weak demand compresses the room for cobalt price rise in the future. In terms of lithium, considering the support of raw material costs and demand in the second quarter, it is difficult for the future lithium carbonate market to continue to reduce prices.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Lin Fangwen 021Mui 51666878

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898

Wu Yang 021 51666818