Cobalt lithium prices remain stable with limited rebound

SHANGHAI, Jul 28 (SMM) – Cobalt prices increased as cobalt raw material suppliers raised prices, bolstering production costs of cobalt salts. However, future demand for cobalt remains uncertain due to the COVID-19 outbreak, which will limit the increase in cobalt prices.

In the lithium market, rising prices deterred processors from purchasing. Demand for ternary materials recovered at a slow pace. Sustained inventory pressure of battery-grade lithium carbonate will limit upward space for industrial-grade lithium carbonate prices.   

In the battery and end-user market, foreign-invested automakers have recently strengthened cooperation with domestic battery makers. Sales in European new energy markets are likely to soar in H2, which may boost the development of domestic new energy sector.

Refined cobalt prices increased last week. Traders intended to stockpile amid rising prices, and inquiry from manufacturers of high-temperature alloy and magnetic materials also increased. SMM refined cobalt prices stood at 237,000-252,000 yuan/mt last week, with the average price up 5,000 yuan/mt on the week, and prices of cobalt intermediate products stood at $10-10.5/lb, with the average price up $0.2/lb week on week.

Inquiry for lithium carbonate from downstream buyers increased last week, but trades failed to improve significantly. Demand for battery-grade lithium carbonate recovered slowly, bolstering inventory pressure for smelters. Industrial-grade lithium carbonate prices are likely to rise further in the short term, but rising costs at purifiers and increasing output may limit the increase in its prices. SMM battery-grade lithium carbonate prices stood at 39,000-41,000 yuan/mt, flat on the week, and industrial-grade lithium carbonate prices at 33,000-37,000 yuan/mt, with the average price up 500 yuan/mt from a week earlier.