The popularity of new energy vehicles has led to an increase in demand, rising prices of upstream raw materials and accessories, affected production caused by power cuts in the south, and lithium salt products have been at a low ebb for a long time. Under the superposition of multiple factors, lithium salt products are ushering in a new round of rising cycle.
Recently, it has been reported on the Internet that the unit price of all series of metal lithium products has been raised by 10% from December 22, 2020 (Ganfeng lithium industry). In response to this rumor, Ganfeng Lithium Industry responded to the media that: due to the rise in the prices of raw and auxiliary materials and the relationship between supply and demand in the market, the prices of some products have been raised, which is different from the price adjustment of the full range of online products. Ganfeng Lithium also said that customers who sign long-term agreements are still implemented in accordance with the pricing mechanism agreed in the contract.
The price of battery-grade lithium carbonate rose 500 yuan / ton to 48500 yuan / ton, while lithium hydroxide remained stable at 50, 000 yuan / ton, according to industry body data. According to industry insiders, due to the reduction in inventory before the end of the year, most suppliers have relatively little inventory. At the same time, the recent implementation of "power restriction" policies in Jiangxi, Hunan and Zhejiang provinces has affected the output of some suppliers to a certain extent.
In addition, due to the impact of the global COVID-19 epidemic, most foreign lithium salt upstream raw material mineral production, logistics and transportation have been affected to a certain extent, resulting in a shortage of raw material supply.
In the first half of this year, due to the impact of the epidemic, the downstream market demand for lithium salt was in the doldrums, and the price of lithium carbonate continued to hover at a low level until it began to pick up in the fourth quarter.
At present, lithium carbonate is mainly used in lithium iron phosphate and medium nickel ternary materials. In the second half of this year, the continuous recovery of lithium iron phosphate and medium nickel ternary battery market has also led to a steady increase in the demand for lithium carbonate. With the continuous adjustment of demand and supply, its price has begun to show an upward trend since the beginning of the year. According to people familiar with the matter, the price of lithium carbonate is at its highest level since March this year. "since the price increase began in early September, it has risen by 8500 yuan per ton," according to people familiar with the matter.
The continued upsurge of the global new energy vehicle market has also significantly boosted the sales expectations of lithium products such as lithium carbonate. The latest data show that in November, sales of new energy vehicles in six European countries totaled 127100, up 183% from the same period last year and 11% from the previous month. China's November production and sales of new energy vehicles completed 198000 and 200000 respectively, up 75.1% and 104.9% respectively over the same period last year. At the same time, with the 2035-year development plan of new energy vehicles and the stringent carbon emission regulations in Europe and the United States, the global mainstream car companies are also actively transforming to electrification, and the prospect of the downstream market of lithium salt continues to be optimistic.
In addition, according to feedback from market participants, the price of lithium hydroxide for high nickel has not changed much recently. On the one hand, it may be due to fierce competition among suppliers, on the other hand, it is expected to be related to the slowdown in the growth of high nickel in the lower reaches this year and insufficient increase in demand.
It is reported that, in addition to the recent online Ganfeng lithium industry price adjustment, some domestic lithium salt enterprises have issued a price adjustment letter. For example, Taizhou Hongwei Lithium Industry Co., Ltd. issued a price adjustment letter, deciding that from January 1, 2021, the price of battery-grade lithium metal will be raised from 430000 yuan / ton to 500000 yuan / ton, and the industrial-grade lithium metal price will be adjusted to 460000 yuan / ton.
Of course, some analysts have pointed out that the recent rise in the price of upstream raw materials, including lithium products, is also related to the continued release of water and currency overissue by governments during the epidemic in order to combat the liquidity pressure brought about by the epidemic, which in turn has something to do with the impact of increased purchasing power.
