[SMM Cobalt Lithium spot Weekly report (0525mur0529)] the tension of cobalt raw materials has been digested the trend of lithium prices or affected by overseas imports.

SMM, May 29th:

Battery and downstream terminal market: in the domestic power market, the installed capacity of the power battery factory has increased compared with the previous month, and the order in June is also better than that in May. The domestic B-end market declined significantly from January to April compared with the same period last year, and the B-end market, which played an important role last year, recovered slowly, with total sales of 155600 vehicles in the first April, down 41.37 per cent from the same period last year. Mainly affected by the domestic epidemic in the first quarter, the online ride-hailing market is cold, and many ride-hailing drivers choose to withdraw or postpone the lease. In April, under the encouragement of the subsidy policy of the state and local provinces and cities, the B-end market gradually recovered, which also led to the rapid recovery of the entire electric vehicle market. From the perspective of overseas markets, although European and American car companies have resumed production one after another recently, it is difficult to recover production capacity quickly. For example, Tesla's current operating rate is only 50%. In addition, three Detroit automakers have diagnosed patients, and the road to return to work is more difficult.

Electrolytic cobalt and cobalt hydroxide: domestic electrolytic cobalt prices rose this week. At the beginning of this week, the market price of electrolytic cobalt continued to rise. However, the downstream large demand companies complete more raw material reserves, and there is no willingness to replenish them at high prices in the near future, while small and medium-sized demand providers just need to purchase sales volume to replenish the stock. Although producers and traders continued to raise prices, spot transactions were sporadic and prices stabilized in the second half of the week. Cobalt intermediate products, the short-term supply of raw materials is relatively tight, the port spot procurement price is still high, mainly individual small and medium-sized smelters to maintain small purchases. However, smelters are not enthusiastic about long-term procurement of African raw materials, downstream orders still did not improve in June, future demand is weak, and there is a lack of support for rising raw material prices. The price of SMM electrolytic cobalt is 24.8-258000 yuan / ton, the average price is 3000 yuan / ton higher than last week. The price of SMM cobalt hydroxide is $9.8 / lb, the average price is the same as last week.

Cobalt salt and nickel salt: the price of cobalt chloride rose slightly this week. By the end of the month, purchase orders increased, but downstream believed that the price increase space was limited, only a few purchases. There is less inventory in the cobalt chloride market, and the downstream cobalt tetroxide order is better than the main downstream ternary precursor order of cobalt sulfate, so the price of cobalt chloride is still higher than that of cobalt sulfate. The transaction price of cobalt sulfate this week is mainly 4.6-47000 yuan / ton, cobalt chloride is sporadic this week, a small amount of 1mur2 cars is sold at 5.7-58000 yuan / ton. The tension of cobalt raw materials has been basically consumed by the market, the current price of cobalt salt is deadlocked, and the demand in the lower reaches of June shows no sign of picking up. After the cobalt raw materials arrive at the plant at the end of June, the price of cobalt salt may be slightly adjusted. The price of SMM cobalt sulfate is 4.6-48000 yuan / ton, the average price is the same as last week. The current price of SMM cobalt chloride is 5.5-58000 yuan / ton, with an average price of 250 yuan / ton higher than last week. The price of SMM battery-grade nickel sulfate is 23000 Mill 23500 yuan / ton, which is 2.5 million yuan / ton lower than last week.

Cobalt tetroxide: the price of cobalt oxide rose slightly this Thursday. Cobalt tetroxide manufacturers quoted a price increase of 18.5-190000 yuan / ton due to the rise of raw material cobalt chloride, with a small number of transactions this week. According to SMM customer feedback, the current market cobalt tetroxide transaction price of 17.5-178000 yuan / ton, only a small amount of transaction price of 180000 yuan / ton. In June, the demand for cobalt tetroxide in the lower reaches of lithium cobalt oxide is basically the same. At present, the acceptance of the price increase of cobalt tetroxide is not high, and the purchase quantity is less. Although there has been a slight recovery in overseas market demand, there has been no response at home and is expected to be postponed until July. The current price of SMM cobalt tetroxide is 17.5-180000 yuan / ton, up 2000 yuan / ton from last week.

Ternary precursor: the price of the precursor remains unchanged this Wednesday. Cobalt salt and nickel salt prices are relatively stable this week, the power market demand is still weak, June orders are not as expected, 523 single crystals and 811 precursors adjust slightly with cobalt salt prices, the overall market price is still upside down. The competition in the digital market is fierce, the downstream purchase orders are reduced, and there is still a phenomenon of enterprises shipping at reduced prices. The price of SMM ternary precursor (523) is 7.15-73000 yuan / ton, the average price is the same as last week. The price of SMM ternary precursor (622) is 7.8-81000 yuan / ton, the average price is the same as last week. The price of the new SMM ternary precursor this week is 7.3-76000 yuan / ton, with an average price of 72250 yuan / ton. The price of the newly added SMM ternary precursor (type 811) this week is 9.1-95000 yuan / ton, with an average price of 93000 yuan / ton.

Lithium carbonate: the price of battery-grade lithium carbonate fell this week. The inquiry for lithium carbonate has increased this week, but basically all of them are based on price comparison, and the actual transaction in the market is sporadic. Electric carbon and industrial carbon enterprises based on cost considerations, the decline rate slowed down, the decline space narrowed. According to SMM research, there is no sign of recovery in the demand for materials in the lower reaches of June, and there may be an improvement in mid-early July. At present, the trading volume of lithium carbonate in the market is still sporadic, and the market supply is still sufficient. Some smelters intend to sign long orders, while some downstream enterprises intend to sample salt lake lithium carbonate based on cost considerations. The price of SMM battery-grade lithium carbonate is 4.2-44000 yuan / ton this week, down 500 yuan / ton from last week. The price of SMM Industrial Grade Zero Lithium Carbonate this week is 3.3-38500 yuan / ton, the average price is the same as last week.

Lithium hydroxide: the price of battery-grade lithium hydroxide fell sharply this week. Large domestic high-nickel material factories gradually resume production, but due to the stock of raw materials, the procurement demand for lithium hydroxide is limited in recent January. Superimposed overseas demand is affected by the transmission of the epidemic, orders are gradually reduced, and overseas orders for lithium hydroxide are synchronously reduced or postponed. The supply structure of battery-grade lithium hydroxide in China has changed, the shortage of shipments has been alleviated, and the price is gradually under pressure. The price of SMM battery-grade lithium hydroxide (coarse particles) is 5.2-58000 yuan / ton this week, down 500 yuan / ton from last week. The price of newly added SMM industrial grade lithium hydroxide this week is 4.4-46000 yuan / ton, with an average price of 45000 yuan / ton.

Lithium cobalt: the price of lithium cobalt is flat this week. The market quotation of 4.35V lithium cobalt is mainly 19.5-205000 yuan / ton, and the price of 4.4V lithium cobalt is 220000 yuan / ton. There are fewer new orders for lithium cobalt this week, and a few purchases are made downstream on a weekly basis. The shortage of cobalt raw materials led to a rise in the price of cobalt products in June, and the price of lithium salt fell this week due to inventory accumulation. Lithium cobalt manufacturers are willing to raise the quotation mainly because of the rising prices of raw materials cobalt chloride and cobalt tetroxide, but the downstream lithium cobalt battery factory does not pay the bill for the time being, the price is still in the game, and the price of lithium cobalt may be difficult to rise. The price of SMM4.35V lithium cobalt is 19.2-197000 yuan / ton, the average price is the same as last week.

Ternary materials: the price of ternary materials has declined slightly this week. This week, the price of the upstream precursor is basically unchanged, and the price of lithium carbonate continues to decline, but there is less procurement in the downstream digital and power market, only a slight increase in demand in the small power market, and a slight decrease in the price of ternary materials. The price of SMM ternary material (523) is 11-117000 yuan / ton, which is 500 yuan / ton lower than that of last week. The price of SMM ternary material (622) is 13-138000 yuan / ton, which is 500 yuan / ton lower than that of last week.

Lithium iron phosphate: the price of lithium iron phosphate remains unchanged this week. The downward trend of lithium carbonate prices slowed this week, there were no new orders in the power market, and the price of lithium iron remained unchanged. The demand for iron lithium in the power market increased in the second half of the year, and some manufacturers recently increased their inventory to prepare for the second half of the year. Orders in the energy storage market have increased, but the competition among domestic manufacturers is fierce. Some enterprises rely on the cost advantage to reduce the price to less than 30,000 yuan / ton, while other manufacturers are forced to reduce the price to about 30,000 yuan / ton in order to win the order. The price of SMM lithium iron phosphate (power type) is 3.5-37000 yuan / ton this week, the average price is the same as last week.

Lithium manganate: the price of lithium manganate fell this week. The price of lithium carbonate has dropped slightly this week, but the overseas market has not yet recovered, which has dealt a heavy blow to lithium manganate enterprises. Most manufacturers have reduced production seriously, and market transactions are sporadic. Some manufacturers can only reduce prices and the price of lithium manganate has been slightly reduced. This week's SMM lithium manganate (capacity type) price is 2.15-28000 yuan / ton, the average price is 500 yuan / ton lower than last week. The price of SMM lithium manganate (power type) is 3.35-35500 yuan per ton this week, the average price is the same as last week.

Future forecast: cobalt raw material tension has basically been digested by the market, cobalt salt price stalemate. At present, the inquiry in the lithium salt market is increasing, but the actual transaction is sporadic. According to SMM, the demand for cathode materials shows no sign of warming up in June, and the market demand for raw materials is limited. Cobalt prices may be slightly adjusted after cobalt raw materials arrive in Hong Kong; in addition, when there is no significant improvement in the structure of domestic supply and demand, future lithium prices need to focus on overseas salt lake imports.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Lin Fangwen 021Mui 51666878

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898

Wu Yang 021 51666818