[2020.05.28 Cobalt Lithium New Energy Internal Morning meeting Summary] orders in June may be the same as May and the downstream market will continue to wait and see.

Published: May 28, 2020 09:48

SMM, May 28th:

Battery terminal market:

In terms of the power market, the power battery factory expects the market to improve in June, but the car companies still have some inventory and the growth rate is expected to slow in June. The digital market is more concerned about the recovery of the Indian market. Due to the slow return cycle and transmission, orders in the 3C consumer market are expected to increase after July. From the point of view of the energy storage market, domestic orders for 5G base stations are gradually increasing, but the price drop is basically about 0.5p / Wh. The export market of energy storage is greatly affected by the epidemic. At present, only African orders are maintained, while orders from India, Europe and the United States are mostly delayed.

Price of upstream raw materials:

Cobalt: the spot market price of domestic raw materials rose slightly; the discount coefficient of overseas raw materials increased, but the price of cobalt went down, which superimposed a heavy wait-and-see mood among demanders in the Chinese market, and the price of newly signed overseas raw materials purchase orders is not expected to rise significantly. Cobalt salt shipments this week are lower than expected, cobalt salt manufacturers have few quotations, downstream that cobalt salt prices rise space is limited, the willingness to purchase is low. Cobalt tetroxide quotation is higher, transactions sporadic, a few high prices, temporarily does not constitute the mainstream transaction price.

Lithium: the price of lithium carbonate still has a slight downward trend, but the rate of decline slows down and the downward space narrows. The demand of the downstream material side has not recovered for the time being and may improve in the middle and first ten days of July. At present, the trading volume of lithium carbonate in the market is still sporadic, the operating rate of lithium salt plants has not been significantly reduced, some smelters intend to sign long orders, and some downstream enterprises intend to sample salt lake lithium carbonate based on cost considerations.

Positive materials and precursors: cobalt salt prices remain high this week, but orders for ternary materials and precursors in June are not as expected, power orders are basically the same as in May, while digital demand has not yet recovered, and it is difficult for the prices of precursors and ternary materials to rise. Lithium carbonate price decline slowed, lithium manganate market turnover is flat, overseas markets have not yet recovered, overseas demand is expected to have to wait for January-February, lithium manganate prices remain low.

Nickel: recently, the domestic price of nickel sulfate has gradually stabilized after a slight decline. Due to the light demand in the downstream ternary material market, the demand quotient has sufficient raw material reserves due to the low operating rate, and the nickel sulfate market has sporadic transactions.

News:

1. Xiangtan electrification: Sichuan Yuneng Lithium Iron Phosphate production Line is expected to be put into production in the second half of this year. Xiangtan Electric revealed that in 2020, the company's shareholding company Yuneng New Energy established a wholly-owned subsidiary Sichuan Yuneng New Energy Battery material Co., Ltd., which is building a lithium iron phosphate production line with an annual output of 20,000 tons, which is expected to be put into production in the second half of this year. After the above production line is put into production, The total annual production capacity of lithium iron phosphate, a new energy source, can reach about 50,000 tons.

2. On the evening of May 19, Green Mei released the report on the issuance of non-public A-shares and the listing notice, which shows that the non-public offering has been successfully completed and a total of 2.425 billion yuan has been raised. It is used for the investment and production of the company's power battery ternary cathode material, 30,000 tons / year ternary power battery material precursor production and other projects.

3. [Huayou Cobalt Industry plans to increase 6.25 billion yuan to expand production key layout of high-nickel lithium materials] on the evening of May 22, Huayou Cobalt Industry (603799) issued a notice that the company plans to raise an additional 6.25 billion yuan. it is used for the project of high nickel matte with an annual output of 45000 tons of nickel, the ternary precursor material project for 50, 000 tons of high-nickel power battery, the construction project of Huayou headquarters Research Institute and replenishment of liquidity.

 

SMM battery materials research team

Lin Fangwen 021Mui 51666878

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898

Wu Yang 021 51666818

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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[2020.05.28 Cobalt Lithium New Energy Internal Morning meeting Summary] orders in June may be the same as May and the downstream market will continue to wait and see. - Shanghai Metals Market (SMM)