In terms of lithium salt, considering that the downstream power battery industry is affected by poor demand, the buyer is cautious in goods preparation, and there is no obvious new demand in the industrial field. With the return of lithium salt supply to normal level in March and the narrowing of the price gap between industrial carbon and electric carbon, the profit of the purification plant is squeezed, and the upward power of lithium carbonate price is limited.
Battery and downstream terminal market: this week, the downstream automobile enterprises gradually restored their production capacity, but affected by the epidemic, consumers' willingness to buy cars is low, and the production and sales volume in the first quarter is expected to decline seriously year on year. At present, the car market is generally dominated by consumption of inventory, and the purchase volume of upstream batteries has also declined. Most of the power battery factories are still recovering their operating rate. Considering the weak power market demand, except for some large factories, they are basically making a small number of orders before the consumption year. In order to encourage the new energy vehicle industry, the government has recently issued favorable policies. For example, Guangzhou has increased subsidies for new energy buses, and the output of buses is expected to increase this month. At present, there is no policy on passenger cars. It is expected that after the epidemic situation improves, provinces and cities will also introduce relevant policies to encourage citizens to buy. The consumer digital market is expected to usher in a consumption climax after the end of the epidemic. At present, the consumer market has increased the purchase of digital batteries in April to prepare for the second quarter.
Electrolytic cobalt and cobalt hydroxide: Electrolytic Cobalt prices fell this week. At present, the price difference between domestic and foreign cobalt is still in the market, and the domestic suppliers and speculative market are bearish. However, the downstream demand is weak, the mainstream manufacturers reduce their quotations, and the market mainstream prices keep falling. In terms of cobalt hydroxide, the price of imported raw materials is high, but the smelter's current shipment is poor. At the same time, with the gradual arrival of port inventory, the inventory of intermediate products is relatively sufficient, and considering the cost factor, the purchase intention is limited.
Cobalt salt and nickel salt: cobalt salt and nickel salt prices fell this week. This week, the construction of cobalt salt gradually recovered, but the downstream demand was still weak, and there was a lot of wait-and-see caution. Some cobalt salt plants sold less than 100 tons because of the cost advantage of raw materials or the purpose of withdrawing funds. Next week, the downstream procurement demand may gradually recover, but at present, the domestic supply of cobalt salt is greater than the demand, and the price is still falling.
Future forecast: in terms of cobalt, with the completion of orders in the industrial chain years ago, the recovery of superimposed new demand is slow, the market is more cautious and wait-and-see, and some cobalt salt plants will ship at a small price due to the advantage of raw material cost or the purpose of withdrawing funds. In terms of lithium salt, considering that the downstream power battery industry is affected by poor demand, the buyer is cautious in goods preparation, and there is no obvious new demand in the industrial field. As the supply of lithium salt returned to normal level in March, and the price gap between industrial carbon and electric carbon narrowed, the profit of the purification plant was squeezed, so the upward power of lithium carbonate price was limited. In addition, the development of overseas epidemic may have an impact on domestic demand for materials and lithium salts. At present, a domestic cathode material factory said that although the production of Japanese and Korean enterprises has not changed at present, Korean customers with serious epidemic situation have taken measures such as reducing the quantity of long orders or delaying delivery, considering the uncertainty of follow-up demand. If the epidemic is not effectively controlled in the short term, it may affect the export of domestic cathode materials and lithium salt in the second quarter.
Contact Person: Mrs. Sandy Chung
Tel: +86-135 5564 2447