From an overall data analysis perspective, rigid demand in the ESS sector remained stable at month-end June, with both domestic and overseas demand receiving certain support from mid-year factors and various policies. Currently, the auto sales boom driven by the auto show in the early stage of July is gradually fading away. The penetration rate of NEVs in the market remains stable, and currently, the consumption momentum in the end-use market is insufficient. It is expected that there will be a certain increase in end-use demand, but it will be relatively limited. In terms of market transactions, as of month-end June, market transactions remained sluggish, with some second-life battery producers basically not building up much inventory and maintaining a just-in-time procurement strategy. By July, after the mid-year period, there is further room for demand in the NEV and ESS markets to decline.

This week, prices of salt products such as cobalt sulphate and lithium carbonate rose slightly, while nickel sulphate prices were mainly oscillating, with a slight decline driven by the downward trend in nickel prices this week. This week, the nickel and cobalt coefficients for ternary and LCO black mass remained basically stable, while the lithium coefficient rose slightly. The prices per % lithium for LFP black mass also continued to rise.

[LCO price rises slightly, with expected increase in future market]

[Co3O4 trading activity weakens, with long-term contract fulfillment as the main focus. The market outlook remains bullish.]

[Tight supply coupled with rigid demand supports the upward trend of cobalt chloride prices]

[Separator prices remained stable during the week, with supply and demand operating on dual tracks and limited short-term fluctuations]

[SMM Weekly Review] This week, refined cobalt prices were in the doldrums. On the supply side, smelters maintained long-term contract supply, and ex-factory prices remained unchanged due to production costs. Domestic futures prices declined steadily, with traders' quotes and transaction prices following suit. On the demand side, social inventory of refined cobalt remained high. Coupled with weak demand from downstream alloy and magnetic material producers affected by high temperatures, most downstream producers maintained a just-in-time procurement rhythm, and actual transactions of refined cobalt remained sluggish this week. It is expected that refined cobalt prices will maintain a fluctuating trend in the short term, and subsequent price movements will require close attention to cost increases and the digestion of social inventory.

[SMM Weekly Review] This week, the spot price of cobalt intermediate products continued to maintain an upward trend. Some enterprises reported that the price of low-priced goods had reached 12.3-12.4, while the quoted price of high-priced goods was below 13. On the supply side, cobalt intermediate product resources were currently relatively concentrated. Miners still suspended their quotations, and traders continued to raise their quotations amid expectations of a price increase. On the demand side, smelters faced difficulties such as losses in production costs and weak downstream demand. In the face of an uncertain future situation, most enterprises maintained a focus on consuming their own inventory. Some smelters with relatively low inventory inquired about prices in the market, but due to their quotations still being lower than those of sellers, market transactions remained relatively low. Overall, affected by the DRC's postponement policy, cobalt intermediate products in China will still face a shortage of raw materials in the future, and there is upward momentum in prices. However, during this process, attention needs to be paid to the inhibition of downstream demand caused by the increase in raw material prices.