Price Review and Forecast on Cobalt and Lithium

SHANGHAI, Aug 24 (SMM) – On cobalt, inquiries from downstream cell and materials producers will be increasing by the end of August, and cobalt intermediate product prices stood firm. Cobalt prices are expected to stop declining.

Cobalt salt prices fell slightly last week. Considering the high cost of cobalt intermediate products and tight inventories, cobalt salt companies relatively held back cargoes last week. Low-priced sources of goods have decreased, and the price decline has slowed down.

In terms of lithium, supply increment is likely to be limited in Q4 amid tight supply of ore and seasonal factors. Demand increase in H2 is expected to be contributed by LFP.

Prices of LCO declined last week. Some LCO companies have lowered their quotations last week. The purchase price of downstream battery cell factories is expected to be lower than 315,000 yuan/mt.

Prices of ternary precursor remained unchanged last week. The overall costs of precursor declined slightly as nickel salt prices fell slightly and cobalt salt prices continued to fall.

Ternary materials costs rose as lithium salt prices gradually increased last week and precursor prices stabilised. Ternary battery orders at leading plants declined and the restocking demand weakened due to rising inventories.

Battery separator prices were unchanged last week. Downstream motive power products demand remained high. Wet process products at leading battery separator plants have been fully produced and sold out, and orders have increased steadily.