[2020.07.23 Morning meeting Summary of Cobalt Lithium New Energy] Cobalt price has an obvious upward trend in the behavior of stock preparation at the end of the material.

SMM, July 23:

Battery terminal market:

At present, there are still great difficulties in the policy of "new energy vehicles going to the countryside". 1. The rural market is more inclined to use low-speed electric vehicles, whose price is basically about 30, 000 yuan, while the A0 and A00 cars going to the countryside are basically about 5-100000 yuan. There is no advantage in price, and rural areas are more sensitive to price. 2, electric vehicles are difficult to adapt to the complex road conditions in rural areas. 3. This year, the epidemic has affected the consumption of rural residents, and their willingness to buy electric cars is not strong.

Price of upstream raw materials:

Cobalt: the import coefficient of cobalt raw materials continued to rise, and suppliers offered higher prices. The quotation of cobalt salt and cobalt tetroxide continued to rise, the rising cost supported the price increase, and the price began to transmit downstream. The quotation of cobalt sulfate rose to 4.6-47000 yuan / ton, cobalt chloride rose to 5.7-58000 yuan / ton, and cobalt tetroxide rose to 18-190000 yuan / ton. The price is still in the game this week, the cost of the smelter has increased, and the transaction price is expected to rise.

Lithium: industrial carbon market feedback the current downstream inquiry is significantly increased, including lithium manganate, lithium iron phosphate, deep processing and some industrial enterprises, but the market transactions and shipments have not been significantly improved, the buyer is mainly price comparison. At present, the shipments of large industrial-grade lithium carbonate factories are still tight, the price adjustment will is strong, and the price increase is relatively large; in addition, some small and medium-sized manufacturers have relatively abundant inventory, and the price is adjusted slightly, mainly to keep up the price. At present, the cost of purification enterprises and traders has increased significantly, the demand for electric carbon market has recovered slowly, and the price difference between industrial carbon and electric carbon has narrowed.

Cathode materials and precursors: in terms of ternary precursors, large manufacturers of precursors quoted an increase of 2000mur3000 yuan / ton, but the actual power market transactions are sporadic. It is expected that there will be a large number of orders next week, which is currently in the stage of game with the material factory. Small and medium-sized enterprises have some transactions in the small power and digital market, with prices rising slightly by 500mur1000 yuan / ton, and it is difficult for the lower reaches to accept higher price increases. In terms of iron and lithium, the average price of yellow / phosphorus has increased by 2.74% recently, but it has little impact on the price of iron and lithium, the bargaining power downstream of the iron-lithium market is strong, and the price of iron-lithium continues to be under pressure.

Nickel: Shanghai Nickel has been negative for 4 consecutive days in nearly a week, mainly fluctuating in the range of 105000 per ton. Although the price of nickel this week is somewhat lower than that of last week, battery-grade nickel sulfate is supported by less inventory, but the low transaction price is still maintained at 23500 yuan / ton and does not fall with the nickel price. This week, the nickel sulfate factory is less willing to ship and has a strong willingness to keep up the price. At present, there are few nickel sulfate manufacturers with the intention of shipping and receiving orders. the mainstream quotation of battery-grade nickel sulfate is 24000 / ton, and the actual market transaction price is 23500 Mel 23800 yuan / ton.

News:

1. [EU reaches Economic recovery Agreement New Energy vehicles will develop rapidly] EU leaders have reached an agreement on a package of measures for EU economic recovery after the epidemic, with a scale of 750 billion euros. Soochow Securities believes that EU support policies continue to exceed expectations, with sales of new energy vehicles recovering significantly in May, 50% growth in June compared with the same period last year, and 100% growth in July. The leader of the domestic battery industry chain has a production schedule of more than 40% this month, superimposed overseas recovery, and a higher year-on-year growth rate. With the delivery of new models and the recovery of corporate customers, the industry demand is increasing month by month, and the performance of the leading company in the third quarter is expected to return to high growth. Related companies include Pu Tai Lai, New Zeus, and so on.

2. [Yiwei Lithium Energy: subsidiary Jingmen Chuangeng increases the business scope of battery materials production, marketing and R & D] Yiwei Lithium Energy subsidiary Jingmen Chuangneng has changed its business scope due to the needs of business development and management, and other information remains unchanged. After the change, the business scope of Jingmen Chuangneng has increased the "production of battery materials". Recently, Yiwei Lithium Energy announced that the company had received notice from its subsidiary Jingmen Yiwei Chuangneng Lithium Battery Co., Ltd. (hereinafter referred to as "Jingmen Chuangneng"). Jingmen Chuangneng has changed its business scope due to the needs of business development and management. other information remains the same. After the change, the business scope of Jingmen Chuangneng has increased the "production of battery materials".

3. [Jianghuai Automobile: company and Volkswagen China Investment plans to increase capital to Jianghuai Volkswagen] Jianghuai Automobile: company and Volkswagen China Investment plans to increase capital to Jianghuai Volkswagen. After Volkswagen China Investment and JAC completed the subscription for the new equity of the joint venture company respectively, the total registered capital of the joint venture company increased from 2 billion to 7.356 billion yuan. This capital increase is an important link in the strategic cooperation between the company and Volkswagen China investment. This capital increase is conducive to promoting the strategic cooperation between the company and Volkswagen China investment and promoting the development of the joint venture company.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898