【SMM Analysis：Overseas Demand Recovery Lower-than-Expected, Refined Cobalt Export Volume MoM】

Ternary cathode material prices rebounded a little in the week ending April 3. Climbing lithium prices pushed up cathode costs. Entering April, major battery cell makers reduced lithium carbonate supply to cathode makers.

On March 26, the 1.5GWh sodium-ion battery production line project of Changde Cospower New Energy Technology company commenced construction in Changde City, Hunan Province.

In the week ending March 14, Series 5, 6, and 8 precursor prices rose slightly due to increasing raw material costs. Precursor firms raised their prices, but difficulty in passing on these increases kept transaction prices stable. Suppliers, affected by high nickel sulphate prices, are cautious with accepting orders and are aligning production with sales. Demand is supported by optimism in the nickel sulphate market and encouraging March vehicle sales, leading to active inquiries. However, downstream buyers are resistant to costly precursors, limiting the potential for substantial price increases in ternary precursors.

On March 15th, lithium carbonate futures dipped by 0.65% to 115,050 yuan/ton, while spot prices remained stable at an average of 112,250 yuan/ton, amid cautious market sentiment.

Most Actively Traded Lithium Carbonate Contract Continues to Rise, Up 1.94% 【SMM Futures Review】SMM News on February 26: On February 26, the most actively traded lithium carbonate futures contract 2407 continued to rise by 1.94%. Data shows that the most actively traded lithium carbonate futures contract 2407 opened at RMB 102,000/ton and closed at RMB 102,300/ton, with a trading volume of 215,205 lots and open interests of 179,602 lots, an increase of 5,818 lots from the previous trading day. SMM’s spot price quotation for battery-grade lithium carbonate on the same day was RMB 94,300-99,000/ton, averaging at RMB 96,650/ton, an increase of RMB 400/ton from the previous working day. Judging from the trend, lithium carbonate prices opened slightly higher in the morning and then fluctuated lower, running to the day's low of RMB 101,250/ton before fluctuating higher. After the noon opening, the most actively traded contract fluctuated lower in a small range before finally closing up 1.94%.

Metals market: As of midday close, base metals in the domestic market rose almost across the board. Shanghai nickel rose 4.1%, and Shanghai aluminum rose slightly. Shanghai tin fell 1.17%. Shanghai copper, Shanghai zinc and Shanghai lead all rose within 0.3%. The main alumina futures rose 2.08%. The main industrial silicon contract rose 0.6%. The main lithium carbonate futures contract rose 2.72%. The black series is mostly red, and the iron ore rose 0.89%. Thread and hot coil rose slightly, and stainless steel rose 1.34%. In terms of double coke, coking coal fell 0.31% and coke fell 0.21%. In terms of external metals, as of 11:42, LME metals were mixed. London zinc and London nickel rose slightly, London aluminum rose 0.45%, London lead, London tin, and London copper all fell slightly, and the decline was within 0.3%. In terms of precious metals, as of 11:42, COMEX gold rose 0.19%, and COMEX silver fell 0.04%. In terms of domestic precious metals, as of noon close, Shanghai gold fell 0.02%, and Shanghai silver fell 0.42%. Gold prices are set to post weekly gains, supported by a weaker dollar and safe-haven buying this week. Conflict in the Middle East has also boosted gold's safe-haven appeal. In addition, as of noon closing, the main futures of European line container shipping were reported at 2048 points, up 0.5%

Rongbai Technology announced that it has signed a joint research and development agreement with international giant LG Energy Solution (LGES) to cooperate in areas such as lithium iron phosphate and other battery materials. This cooperation will cover multiple aspects from technology development, production manufacturing to product sales, and is expected to strengthen the leading position in the global power and energy storage market. According to the agreement, the two parties will have close communication and regular discussions to meet evolving market demand dynamics and form a long-term cooperative relationship. The results of the cooperation are planned for large-scale global sales to enhance Rongbai Technology's international market influence. In addition, the company has achieved mass shipments and is promoting the industrialization process of the lithium iron phosphate project and high-voltage products. Both parties also plan to expand cooperation in other cutting-edge material areas.

Approaching the Spring Festival, the cobalt market trading weakened, the price of cobalt products remained stable, and the cobalt mining giant slashed the output target due to the low cobalt price [SMM Weekly Observation]

According to customs data, China's aluminium extrusion export volume (HS code 76041010, 76041090, 76042100, 76042910, 76042990) stood at 81,800 mt in August 2022, a month-on-month decrease of 11,500 mt or 12.4% and a year-on-year drop of 3.42%.

According to the General Administration of Customs, China imported a total of 51,037.4 of primary aluminium in July, with imports with HS code 76011010 and 76011090 standing at 85.4 mt and 50,951.9 mt respectively.