The return of "King Ning"! The total intraday market capitalization of more than 1.35 trillion of this price increase letter detonated the lithium plate!

SMM Oct. 18: when trading opened this morning, the stock price of Ningde era fluctuated upward, rising more than 2% in intraday trading, and the total market capitalization exceeded 1.35 trillion, which was a very eye-catching performance.

On the news side, recently, a price increase letter about Penghui Energy has been circulated on the Internet. According to the notice letter, due to the continuous sharp rise in the price of battery raw materials and serious shortage in recent days, most material manufacturers are still unable to guarantee supply when they ask for cash delivery. To this end, the company decides to implement bulk linkage pricing for all orders, not to accept orders with long periods and waiting for notification to feed and pick up goods, and to renegotiate all orders that have been received but not picked up.

It is reported that the letter was signed on October 13, and as soon as the news came out, lithium plates, including Ningde era and Penghui Energy, rebounded from lows on the same day. According to statistics, in the short four trading days since October 13, the Ningde era has risen by more than 12%, and its strength is not to be underestimated.

According to the spot quotation of SMM, the prices of battery raw materials, led by battery-grade lithium carbonate, have continued to rise since August. as of October 15, the average spot price of SMM domestic battery-grade lithium carbonate has reached 189000 yuan / ton, up 100000 yuan / ton from the beginning of August, an increase of 112.4%.

"Click to view the spot market of SMM new energy products.

SMM research shows that since August, there has been a gap of about 14% in domestic battery-grade lithium carbonate. Considering that the production expansion plans of some domestic lithium iron manufacturers in the second half of the year may be delayed due to the high cost of lithium prices and the shortage of iron phosphate, and the increase in demand is not up to expectations, SMM predicts that the supply and demand structure will remain tight in the second half of the year.

However, recently, under the influence of excessive superimposed cost pressure on downstream power cuts, the procurement demand for lithium carbonate has weakened, the downstream intends to lower prices, the game sentiment between the two sides has deepened, and the upward range of lithium carbonate prices has slowed down significantly. Lithium salt market recently affected by downstream power cuts are weak, lithium hydroxide is particularly obvious, downstream orders for high-nickel materials continue to weaken, lithium hydroxide prices are under pressure. "View details

SMM quotation shows that battery-grade lithium hydroxide has been stable at 182000 yuan / ton since October 12, and the price is under obvious pressure.

However, in the context of the continuing shortage of lithium ore, there is still a lot of room for lithium salt prices to rise in the future. As for the price increase letter of Penghui Energy, some institutions said that the more important reason for the uplink of the battery link is the expected response to the profit inflection point in advance. Around the second quarter of next year, the production capacity of some material links will be expanded and landed, the shortage of battery raw materials will be alleviated, and the profit inflection point of the battery is expected to appear. If car companies' price increases fall more widely at the end of 2021, the profit inflection point is expected to come ahead of schedule.

According to previous statistics from the China Automotive Power Battery Industry Innovation Alliance, in September 2021, the number of power batteries installed in China was 15.7 GWH, an increase of 138.6% over the same period last year. In September, domestic sales of new energy vehicles were 357000, up 148% from a year earlier, exceeding market expectations. Citic Securities commented that in the domestic market, the industry is booming; overseas, the subsidy policy is expected to accelerate, the US market is expected to return to high growth, and the European market is expected to remain high under the increasingly stringent new carbon emissions regulations.

Moreover, on October 15, the Automobile Management Office of the Ministry of Industry and Information Technology also said that it would give full play to the role of the joint ministerial meeting mechanism of energy conservation and new energy vehicle industry, co-ordinate the study of a series of policies and measures, and maintain the continuity and stability of supporting policies in all links. Effective convergence. Improve the guarantee ability of key resources and jointly maintain the security and stability of the industrial chain supply chain. Once again from the policy point of view, once again stressed the importance of the new energy vehicle industry.

Under such a favorable background, Ningde era, as a leading power battery enterprise, naturally makes a lot of profits in the current boom of new energy vehicles.