[Minor metal] Positive Impact from Li-Ion Battery Market Recovery on Cobalt Prices Will be Limited in the Short Term

SHANGHAI, Aug. 10 (SMM) -- Li-Ion battery demand delayed recovery due to economic financial crisis. Orders from battery cell market began increasing until early August this year, with a growth rate of 30-50%. However, most of battery cell factories built up lithium cobalt oxide stocks for August and September at RMB 230,000/mt, which have limited positive impact on recent recovery of lithium cobalt oxide market. In this context, any positive impact from demand recovery on the entire industrial chain will be very limited.

    At present, market demand remains uncertain during October. The demand for cobalt products will grow during October, if consumption exceeds expected. In this context, the growth rate of cobalt prices during October will likely exceed August and September given tight raw material supply.

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