Precursor prices trended higher maid positive motive power market in H2 2020, increased cost and demand

Published: Dec 29, 2020 08:50

Save

Demand for precursors rose sharply amid positive domestic NE market in H2 and surge in the European EV market year-on-year.

SHANGHAI, Dec 29 (SMM) — Demand for precursors rose sharply amid positive domestic NE market in H2 and surge in the European EV market year-on-year. Nickel salt increased sharply in December, and cobalt salt prices began to rise in mid and late-December, driving prices of precursors to rise. Precursor prices trended higher as precursor plants still have some raw material inventories and the price hike took some time to pass through to downstream plants in approaching year-end.

Ternary precursor inventory decreased in H2, demand was positive

Source: SMM, E: estimate

The rapid recovery of the domestic NEV market in H2 and the year-on-year surge in the European electric vehicle market greatly boosted demand for domestic precursors. Nickel salt prices increased significantly in December and cobalt salt prices began to rise in mid-to-late December, lifting prices of precursors.

Precursor prices rose in Dec on rising raw material prices and strong demand

Source: SMM, E: estimate

As precursor producers still have some raw material inventories and it is slow for higher raw material prices to pass through to downstream buyers towards the end of the year, precursor prices increased slowly.

For more information on the China New Energy sector, please subscribe to China Cobalt & Lithium Weekly Report.

Cobalt Lithium

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

23 hours ago

Beijing Launches 500-kV Power Project in Fengtai, Boosting Grid Resilience and Industrial Growth

On January 28th, the construction of the 500-kilovolt power transmission and transformation project in Fengtai, Beijing officially started. This project is the first newly-built 500-kilovolt power grid project in Beijing during the 15th Five-Year Plan period. It will significantly enhance the resilience and power receiving capacity of the southern Beijing power grid and provide reliable power support for Beijing to continuously optimize the investment structure and vigorously develop high-end, precise, and cutting-edge industries. The 500-kilovolt power transmission and transformation project in Fengtai, Beijing is a key project of Beijing's power grid during the 15th Five-Year Plan period and one of the "3 100" key projects in Beijing this year. It is constructed and managed by the State

23 hours ago

Shaanxi-Anhui UHV DC Project's 500-kV AC System at Hezhou Station Begins Operation After Trial Run

On February 1st, the 500-kilovolt AC system of the Hezhou Converter Station, the receiving-end station of the ±800-kilovolt UHV DC power transmission project from northern Shaanxi to Anhui, was officially put into operation after a 24-hour trial run.

23 hours ago

750-kV Power Line Connecting Northern to Central Shaanxi Fully Operational

On February 2nd, the 750-kilovolt power transmission and transformation project of the third passageway from northern Shaanxi to central Shaanxi was fully connected. The project starts from the 750-kilovolt Shuofang Substation in Shenmu City in the north and ends at the 750-kilovolt Bailuyuan Substation in Lantian County in the south. It has newly built a 1,271-kilometer line, passing through 18 counties (districts) in 4 cities including Yulin, Yan'an, Weinan and Xi'an.

23 hours ago