[SMM Cobalt Lithium spot Weekly report (0713mur0717)] the price of cobalt salt has risen slightly and the cost reduction requirements at the terminal are still there.

SMM, July 17:

Battery and downstream end market: in terms of power market, overseas European countries introduced new energy subsidy policies in May, giving priority to Germany and France, while the Netherlands, Britain and Greece also launched new policies on electric vehicles one after another. After the implementation of the policy in June, sales of new energy vehicles in Europe returned to high growth. Among them, Germany and France led the European market to rise month-on-month compared with the same period last year. Sales in major European countries totaled 81000 vehicles in June, up 93 per cent from a year earlier and 104 per cent from a month earlier, surpassing the highest level in a single month before the epidemic, with a penetration rate of 8.9 per cent in June. It is expected that the rapid repair of the European car market will also drive the demand of domestic battery and material enterprises, and promote the domestic new energy industry chain to warm up as soon as possible.

Electrolytic cobalt and cobalt hydroxide: the price of electrolytic cobalt rose this week. The price of electrolytic cobalt rose, the spot market was deserted, and a few traders expected prices to rise and hoard goods. Overseas markets are still in the summer break, there is no sign of recovery, it is expected that the future price of electrolytic cobalt is more difficult to rise, and the price gap between electrolytic cobalt and cobalt sulfate system is gradually narrowed. In terms of cobalt intermediate products, the epidemic in Africa has increased the cost of cobalt raw material suppliers in many ways, reduced the willingness to sign zero orders, and kept the spot price of cobalt intermediate products stable. The price of SMM electrolytic cobalt this week is 23.2-247000 yuan / ton, the average price is 2000 yuan / ton higher than last week. The price of SMM cobalt intermediate is $9.8 per pound, the average price is the same as last week.

Cobalt salt and nickel salt: the price of cobalt salt and nickel salt rose this week. Cobalt salt suppliers collectively raised the quotation, cobalt sulfate price more than 46000 yuan / ton, cobalt chloride price more than 56000 yuan / ton. Demand business more wait and see this week, a little purchase cobalt sulfate price 45000 yuan / ton, purchase cobalt chloride price 5.5-56000 yuan / ton. The supply and demand structure of cobalt salt is getting better, the unstable factors of superimposed cobalt raw material import are still in place, the falling space of cobalt raw material price is narrowed, and the transmission of rising price still takes time, and the price of cobalt salt may rise slowly. The price of cobalt sulfate in SMM this week is 4.5-47500 yuan / ton, an average price up 500 yuan / ton compared with last week. The current price of SMM cobalt chloride is 5.4-56500 yuan / ton, with an average price of 500 yuan / ton higher than last week. The price of SMM battery-grade nickel sulfate is 2.35-24000 yuan / ton, an average price of 350 yuan / ton higher than last week.

Cobalt tetroxide: the price of cobalt tetroxide rose on Thursday. Cobalt tetroxide quotation rose to 180000 yuan / ton, cobalt tetroxide has a structural shortage, large particles and spray cobalt tetroxide inventory is less, demand increases, prices rise. The buyer's willingness to purchase is enhanced, but the price transmission still takes time, and the price of cobalt tetroxide may rise slowly. The current price of cobalt tetroxide in SMM this week is 17.1-176000 yuan / ton, an average price up 1000 yuan / ton compared with last week.

Ternary precursor: the price of the precursor remains unchanged this Wednesday. Cobalt, nickel salt prices rose slightly this week, downstream demand is general, material factory inquiries are mostly, the actual transaction is sporadic. Last week, there were some low-price locking phenomena in the lower reaches. This week, the prices of the precursor enterprises basically rose by 2000 RMB3000 / ton, while the downstream is still in the wait-and-see stage. The actual transaction may remain unchanged until the end of next week or the end of the month. The price of SMM ternary precursor (523) is 7.1-73000 yuan / ton this week, the average price is the same as last week. The price of SMM ternary precursor is 7.3-75500 yuan / ton, the average price is the same as last week. The price of SMM ternary precursor (622) is 7.8-80500 yuan / ton, the average price is the same as last week. The price of SMM ternary precursor (811) is 9.05-95000 yuan / ton, the average price is the same as last week.

Lithium carbonate: lithium carbonate prices are flat this week. Lithium carbonate market currently upstream short-term pro-price willingness is strong, for the price of a long-term bottom, the intention to its small pullback to the cost line. However, in terms of the current supply and demand structure of lithium carbonate, both upstream and downstream are still cautious about the long-term price trend, and the market pricing is still in the game. The price of SMM battery-grade lithium carbonate this week is 3.9-41000 yuan / ton, the average price is the same as last week. The price of SMM industrial grade zero lithium carbonate is 3.2-37000 yuan / ton, the average price is the same as last week.

Lithium hydroxide: lithium hydroxide prices are flat this week. Lithium hydroxide has fewer spot transactions in the current market, and the concentration of supply and demand is relatively high. First-line suppliers are optimistic about the expectation of lithium hydroxide demand in the future, and at present they are mainly willing to raise prices; second-and third-line suppliers still need to enter more supply chain systems at present, and their bargaining power is weaker than that of buyers. The price of SMM battery-grade lithium hydroxide (coarse particles) is 4.7-52000 yuan / ton this week, the average price is the same as last week. The price of SMM industrial grade lithium hydroxide is 4.2-45000 yuan / ton, the average price is the same as last week.

Lithium cobalt: the price of lithium cobalt is flat this week. Lithium cobalt quotation has not been adjusted this week, downstream battery factories are expected to start signing orders for lithium cobalt from the end of next week to the end of the month, upstream raw material prices will rise, and lithium cobalt prices may rise. The price of SMM4.35V lithium cobalt is 19.1-196000 yuan per ton this week, the average price is the same as last week.

Ternary material: the price of ternary material is the same this week. The prices of precursors and electric carbon remain unchanged this week, and the rise in the price of upstream raw materials has not yet been transmitted to ternary material enterprises. at present, it is difficult for battery factories to accept the increase in material prices, power market demand is general, and it is difficult for ternary material prices to rise. The price of SMM ternary material (523) is 11-116500 yuan / ton this week, the average price is the same as last week. The price of SMM ternary material (622) is 13-137500 yuan / ton, the average price is the same as last week. The price of SMM ternary material (type 811) is 14.7-160000 yuan per ton, the average price is the same as last week.

Lithium iron phosphate: the price of lithium iron phosphate fell slightly this week. Industrial carbon prices remain unchanged this week, and demand for iron and lithium in the power market increases slightly, and the increase is expected to be significant next month. Competition in the energy storage market is still fierce, downstream battery factories continue to lower prices, the current high prices have declined slightly. The price of SMM lithium iron phosphate (power type) is 3.45-37000 yuan / ton this week, the average price is the same as last week. The price of SMM lithium iron phosphate (energy storage type) is 2.8-33000 yuan / ton, the average price is 250 yuan / ton lower than last week.

Lithium manganate: the price of lithium manganate remains unchanged this week. Industrial carbon prices remain unchanged this week, downstream demand has not changed significantly, the market turnover is light, lithium manganate prices do not have the opportunity to rise for the time being. This week's SMM lithium manganate (capacity type) price is 2.1-28000 yuan / ton, the average price is the same as last week. The price of SMM lithium manganate (power type) is 3.3-35500 yuan / ton, the average price is the same as last week.

Negative materials: the prices of artificial graphite and natural graphite are the same this week. The price of raw material needle coke remains unchanged, the order quantity of some large power battery manufacturers in the lower reaches increases, and the price is stable. The order volume at the middle and low end of the market maintains well, but the market competition is more fierce and the price is under pressure. This week SMM artificial graphite (high-end) price is 75-80 thousand yuan / ton, SMM artificial graphite (middle-end) price is 65-70 thousand yuan / ton, the average price is the same as last week. SMM natural graphite (high-end) price is 50-60, 000 yuan / ton, SMM natural graphite (middle-end) price is 30-40, 000 yuan / ton, the average price is the same as last week.

Diaphragm: the price of diaphragm is flat this week. The warming process of the installed capacity of power batteries accelerated in the second half of the year, and the demand for diaphragms increased. Battery companies strengthen cost control, diaphragm prices may continue to be under pressure. This week, the price of SMM wet base membrane (5 μ m) is 2.5 yuan / square meter, the price of SMM wet base membrane (7 μ m) is 1.8mur2.2 yuan / square meter, and the price of SMM wet base membrane (9 μ m) is 1.2mur1.5 yuan / square meter, all of which are the same as last week. The price of SMM dry base film (16 μ m) is 0.9mur1 yuan / square meter, the average price is the same as last week. The price of SMM wet coating base film (5 μ m + 2 μ m) is 3mur3.8 yuan / square meter, the price of SMM wet coating base film (7 μ m + 2 μ m) is 2.2 million yuan / square meter, and the price of SMM wet coating base film (9 μ m + 3 μ m) is 1.8 million yuan / square meter, the average price is the same as last week.

Electrolyte: the price of electrolyte is flat this week. The demand of downstream power battery recovers slowly, the price of lithium salt is stable in the near future, and the market price of electrolyte remains stable with little fluctuation. This week, the price of SMM electrolyte (ternary power) is 3.5-45000 yuan / ton, SMM electrolyte (lithium iron phosphate) is 3-35000 yuan / ton, SMM electrolyte (lithium cobalt) is 50-60 thousand yuan / ton, SMM electrolyte (lithium manganate) is 1.5-25000 yuan / ton, the average price is the same as last week.

Future forecast: cobalt, overseas cobalt raw material import uncertainty, domestic electricity cobalt and cobalt salt have a certain cost support, superimposed cobalt salt supply and demand structure is good, the future price may rise slowly. Lithium, the recent industrial carbon prices rebounded slightly, the market is currently waiting for the game state, the future price rebound inflection point still need to wait for the demand to release the signal of improvement, at the same time need to give the industry time to digest inventory.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898