【SMM Analysis】 LFP Black Mass Prices Rise with Futures Linkage, While Cobalt Market Remains Sluggish （4.20-4.24）

SMM April 29  News:

Raw material side, lithium carbonate held up well this week due to supply disruptions from Zimbabwe's latest policy and mine permit renewals in Jiangxi, nickel salt prices fluctuated, the cobalt salt market was sluggish, and prices drifted lower. This week, by material type across ternary, LCO, and LFP categories: LFP hydrometallurgy side, taking LFP pole piece black mass as an example, current LFP pole piece black mass prices were 7,200-7,600 yuan/mtu, up 300 yuan/mtu WoW from Thursday's transactions. As lithium carbonate futures and spot prices continued to rise this week, LFP black mass prices also kept rising, and as some LFP recycling enterprises increasingly linked pricing to futures, the price lag weakened and market response became relatively more sensitive.

Ternary and LCO side, ternary prices remained stable for now, as it was not a just-in-time procurement period, and although lithium chemical prices rose, nickel salt and cobalt salt prices showed mediocre performance. Pure cobalt and high-cobalt scrap coefficients began to edge down, mainly because: 1. Cobalt prices had been in the doldrums recently, and earlier pure cobalt enterprises had pushed up pure cobalt and high-cobalt black mass market prices due to high cobalt margins, but now that the market generally held a bearish outlook, prices declined. 2. Top-tier enterprises stopped purchasing after inventory built up to high levels, causing market prices to slip, while previously scarce supply gradually loosened due to the purchase halt, and prices edged down further.