Market Participants Tend to Be Cautious in Purchasing Cobalt Salt amid Volatile Nickel Prices

SHANGHAI, Mar 15 (SMM) - This is a review and forecastof the cobalt and lithium market.

Cobalt intermediate product

The prices of cobalt intermediate products continued to rise last week, driven by rising overseas refined cobalt prices, instability of shipping schedules, and higher raw material transportation cost caused by customs declaration of hazardous chemicals.

Cobalt salt

Cobalt salt prices rose slowly last week, driven by raw material shortages and rising raw material costs. However, the trades were sluggish as volatile nickel prices turned buyers in the cobalt salt market wary.

Tricobalt tetraoxide prices rose last week due to rising cobalt chloride prices and strong downstream demand.

Lithium carbonate

The prices of lithium carbonate rose slightly last week. Smelters resumed their production after completing overhauls. This, coupled with the release of output in Qinghai, alleviated the supply shortages slightly. Battery material producers have basically completed their monthly procurement. Some LFP plants were still negotiating prices with battery makers and  turned more cautious about purchasing lithium salt at the current high prices. There were scarce transactions amid strong wait-and-see sentiment. Although the wave of concentrated procurement has passed, there will still be sporadic restocking by buyers this week, thus the prices are expected to continue to rise slightly.

Lithium hydroxide

The prices of lithium hydroxide jumped last week. Some lithium salt plants were still under maintenance, and the overall supply remained low. Benefiting from the increase in orders for high-nickel battery materials, the demand for lithium hydroxide also increased and the market was still in a significant supply deficit. The trading activities were brisk. As the price difference between lithium hydroxide and lithium carbonate has gradually returned to a relatively reasonable level and buyers have basically completed stocking, the price increase in lithium hydroxide may slow down.

LFP

LFP prices were flat last week. LFP costs increased only slightly amid the slowing lithium salt price hikes caused by restrained demand. Mainstream LFP plants maintained high quotations at around 160,000 yuan/mt. End-users rejected rising battery material prices, and the demand from e-bike and digital sectors declined. LFP prices will remain high under the support of stable lithium salt prices.

LCO

LCO prices rose last week. The inquiry prices of LCO battery makers rose significantly to 581,000-585,000 yuan/mt. Rising tricobalt tetraoxide and lithium carbonate prices encouraged LCO plants to raise their offers. LCO prices are expected to go up further this week.