Prices of Cobalt and Nickel Salt Rose Sharply, Driving Up Prices of Ternary Products

SHANGHAI, Aug 12 (SMM) - Prices of cobalt sulphate and nickel sulphate rose by 11% and 7% respectively month on month in July as the transportation of cobalt intermediate products has been delayed on worsening of Covid-19 pandemic overseas, and cobalt sulphate companies holding back cargoes and cobalt salt prices rose sharply.

Production capacity at Indonesian plants declined and the supply of intermediate products tightened amid worsening Covid-19, leading to tight supply of  nickel sulphate crystals. The expansion of nickel briquette production lines was limited, and nickel sulphate cannot be supplemented in time to meet strong downstream demand. Nickel sulphate prices trended higher as nickel prices rose further. Ternary precursor (motive power) and ternary material prices increased 13.7% and 13.2% respectively as raw material costs trended higher and precursor supply at plants slightly tightened on the month in light of positive demand in July.

Prices of battery-grade lithium hydroxide rose 4.8% on the month in July as the annual maintenance at mainstream smelters continued until mid-July and spot supply in the market fell, coupled with higher downstream demand. Downstream high-nickel ternary material prices increased by 9.7% and continued to increase as lithium hydroxide and precursor prices rose, coupled with strong demand for high nickel.