SMM, July 24th:

Battery and downstream end market: in the power market, foreign car companies have recently strengthened cooperation with domestic battery manufacturers, such as Volkswagen and Wanxiang Group, Yiwei LiNeng and brilliance BMW, Daimler and Funeng, Ningde Times and Honda, etc. It reflects that domestic power battery factories are gradually entering the supply chain of foreign mainstream car companies. At present, the European new energy market has great growth potential, and it is expected to promote the development of domestic new energy industry at the same time.

Electrolytic cobalt and cobalt hydroxide: the price of electrolytic cobalt rose this week. The price of electrolytic cobalt continues to rise, trade inquiries are more willing to hoard goods, inquiries from manufacturers of superalloys and magnetic materials are also increasing, and spot purchases are sporadic. The discount coefficient of cobalt raw materials has been raised, and the spot prices of cobalt intermediate products have risen sharply, with quotations above 10.5 US dollars / lb. the situation in Africa is not optimistic, cobalt raw material suppliers hesitate to sell, and the spot prices of cobalt intermediate products may continue to rise. The price of SMM electrolytic cobalt is 23.7-252000 yuan / ton this week, with an average price of 5000 yuan / ton higher than that of last week. The price of SMM cobalt intermediate is $10.50 / lb, up $0.20 / lb from last week.

Cobalt salt and nickel salt: the price of cobalt salt rose this week. The bullish sentiment of demanders increased and the number of inquiries increased. Cobalt sulfate today quoted 47-50, 000 yuan / ton, transaction prices are more than 46000 yuan / ton, ternary precursor factory feedback basically locked raw materials to the end of August. Cobalt chloride quotation is also gradually raised, today's quotation 58-60 thousand yuan / ton, transaction price 5.6-58000 yuan / ton, downstream price bullish procurement demand increases, cobalt chloride price may continue to rise. The price of cobalt sulfate in SMM this week is 4.6-48500 yuan / ton, an average price up 1000 yuan / ton compared with last week. The current price of SMM cobalt chloride is 5.6-58000 yuan / ton, with an average price of 1750 yuan / ton higher than last week. The price of SMM battery-grade nickel sulfate is 2.35-23800 yuan / ton, the average price is 100 yuan / ton lower than last week.

Cobalt tetroxide: the price of cobalt tetroxide rose on Thursday. According to the supplier feedback of cobalt tetroxide, according to the August purchase plan put forward by the demander, there is almost no order inventory of cobalt tetroxide to be signed, and the demand increases, and the quotation of cobalt tetroxide rises, which is above 180000 yuan / ton this week. A little stock is tight and the manufacturer quotes 18.5-190000 yuan / ton. The current price of cobalt tetroxide in SMM this week is 17.4-179000 yuan / ton, an average price up 3000 yuan / ton compared with last week.

Ternary precursor: the price of the precursor will rise this Wednesday. Cobalt salt prices rose higher this week, domestic power demand in the lower reaches increased slightly, and overseas markets began to recover. The export orders of some enterprises rose 20% and 30% month-on-month next month, and the prices of precursors rose slowly. The price quoted by the precursor company has basically increased by 2000 won 3000 yuan per ton, but the actual transaction has now increased by 1000 won 1500 yuan per ton. The price of SMM ternary precursor (523) is 7.15-74000 yuan / ton this week, up 750 yuan / ton from last week. The price of SMM ternary precursor is 7.35-76000 yuan / ton, which is 500 yuan / ton higher than that of last week. The price of SMM ternary precursor (622) is 7.85-81500 yuan / ton, which is 750 yuan / ton higher than that of last week. The price of SMM ternary precursor (811) is 9.1-96000 yuan / ton, up 750 yuan / ton compared with last week.

Lithium carbonate: lithium carbonate prices are flat this week. Recently, there has been a significant increase in downstream inquiries, but the market transactions and shipments have not been significantly improved, and the buyer is dominated by price comparison. The demand for battery-grade lithium carbonate recovers slowly, the smelter is still facing inventory pressure, and the downstream acceptance of the price increase is low. The price of industrial grade lithium carbonate may still have an upward trend in the short term, but as the cost of purification enterprises increases, the demand weakens passively, the output of stacked carbon increases, the shortage of subsequent shipments alleviates, and the price upward space narrows. 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 3.3-37000 yuan / ton, an average price of 500 yuan / ton higher than last week.

Lithium hydroxide: lithium hydroxide prices are flat this week. Battery-grade lithium hydroxide manufacturers are currently willing to reduce prices are low, high prices are strong; recently, lithium carbonate prices are relatively strong, battery-grade lithium hydroxide spot transactions are sporadic, low prices or slightly lower with a small number of purchases by material factories. Industrial market demand is relatively stable, short-term prices may remain stable. 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. The quotation of lithium cobalt has not been adjusted for the time being, and the long price will be determined at the end of the month. The cost of upstream cobalt series raw materials will increase, and the price of lithium cobalt will rise slightly. 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 materials: the price of ternary materials has dropped slightly this week. In the first half of the week, the market demand was poor, some ternary materials enterprises traded at a low price, and the price of ternary materials fell by a low margin. The rise in precursor prices gradually transmitted to ternary material enterprises in the second half of the week, but downstream battery factories have a low acceptance of the rise in material prices, which is still in the game stage, and the price of yuan materials rose slightly in the second half of Wednesday. The price of SMM ternary material (523) is 10.85-116500 yuan / ton this week, down 750 yuan / ton from last week. The price of SMM ternary material (622) is 12.85-137500 yuan / ton, which is 750 yuan / ton lower than that of last week. The price of SMM ternary material (type 811) is 14.75-160000 yuan per ton, with an average price increase of 250 yuan per ton compared with last week.

Lithium iron phosphate: the price of lithium iron phosphate remains unchanged this week. This week, industrial carbon prices rose slightly, the average price of phosphoric acid raw materials rose, but the price fluctuated greatly, the market was bearish on the price of phosphoric acid raw materials in the future, it was difficult for downstream battery factories to accept the rise in iron and lithium prices, and iron and lithium prices remained unchanged. 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 the same as last week.

Lithium manganate: the price of lithium manganate remains unchanged this week. Industrial carbon prices rose slightly this week, overseas market orders have not yet recovered, domestic demand is stable, market turnover is weak, and it is difficult for lithium manganate prices to rise. 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 of downstream power battery enterprises increases, and the demand for negative materials increases, but the battery bargaining power is strong, and the price of graphite is difficult to rise. 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 installed capacity of power batteries continues to warm up, and the demand for diaphragms increases. Diaphragm head enterprises continue to expand production capacity, technology improvement and cost reduction will be the future core competitiveness, battery factory bargaining is strong, diaphragm price is more difficult to change. 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, cobalt raw material suppliers are willing to sell and raise their quotations, which leads to an increase in the cost of domestic cobalt salt, a reduction in inventory in all aspects of the superimposed industrial chain, and an increase in cobalt prices. However, the follow-up demand of the market is still uncertain due to the epidemic, and the upward space for cobalt prices may be limited. As for lithium, as the price continues to rise, the purchasing power of purification enterprises gradually weakens. The demand for ternary materials recovers slowly, and the pressure of electric carbon inventory is still there, which squeezes the follow-up upward space of industrial carbon prices.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898