News of cobalt collection and storage underpinned cobalt prices, demand for Chinese e-bikes increased in Europe

SHANGHAI, Aug 24 (SMM) — Tight cobalt raw materials supply in China has gradually eased, and major traders expect refined cobalt prices to rise amid market talks that the government would collect and storage 2,000 mt of cobalt in late 2020. Prices of lithium salts were stable, with some producers planning to raise prices slightly.

Refined cobalt futures prices increased amid market talks that the government would collect and storage 2,000 mt of cobalt late this year. Only a few traders raised prices of spot cargoes, and trades were muted as downstream users stood on the sidelines. Prices of cobalt intermediate products steadied at high levels, with the lowest offer at $12.5/lb, and trades were quiet. SMM refined cobalt prices stood between 268,000-283,000 yuan/mt last week, while prices of cobalt intermediate products between $11.5-12.1/lb.  

Sales of SAIC-GM-Wuling rose to the first place and reached 11,984 units as its Hongguang MINI came onto the market and sales of the Baojun series increased steadily, while Tesla and BYD ranked second and third, according to new energy passenger vehicle (NEPV) insurance data for July. The increase in SAIC-GM-Wuling sales bolstered Gotion High-tech, REPT and Phylion’s installed capacities. Exports of electric bikes increased as the Covid-19 pandemic and governments’ subsidy policies boosted demand for e-bikes in Europe, which buoyed orders of ternary, LFP and LMO batteries.