SMM9 March 17:

According to SMM, the bid of the participants was concluded this morning, but the reserves and price were kept strictly confidential.

This collection of reserves and prices may not be as expected, but combined with the historical collection and storage situation, the collection may last several times. According to the feedback of SMM customers from the second half of 2015 to the first half of 2016, there have been three successive purchases, the first time the price is not suitable, only 400,500tons; the second and the third have collected a total of about 2000 tons. In addition, it is rumored that there is also a plan to collect and store electrolytic cobalt in the 14th five-year Plan (2021-2025).

Combined with future expectations, the collection and storage of cobalt price support point is still in, short-term collection of reserves or insufficient, domestic electrolytic cobalt inventory is high, cobalt price is slightly bearish; after the price drop, the State Reserve may be stored again, there is also the possibility.

Therefore, SMM believes that, combined with the demand for battery materials in the fourth quarter and the arrival of cobalt raw materials in Hong Kong, the collection and storage of cobalt prices are still in place, and cobalt prices may fall, but the space is limited, and it is expected that cobalt prices will fall to 25-260000 yuan / ton in the fourth quarter.

SMM battery materials research team

Huo Yuan 021-51666898

Mei Wangqin 021-51666759

Liu Xiaoyi 021-51666716