Ternary lithium battery production cuts sharply, cobalt prices continue to fall
Electrolytic cobalt and cobalt hydroxide: Imported cobalt is actively seeking sales in the market. The supply competition in the electrolytic cobalt market has intensified, buyers are hesitant to purchase, and transaction prices have fallen. Regarding cobalt hydroxide, during the meeting, buyers and sellers still had big differences on the discounts for the coming years, the transaction was difficult, and the spot discounts continued to decline. The price of SMM electrolytic cobalt is 2.7-28.5 million yuan/ton, and the average price is 10,000 yuan/ton lower than last week. The price of SMM cobalt hydroxide was 10.7-11.7 US dollars/lb, and the average price was 0.2 US dollars/lb lower than last week.
Cobalt salt and nickel salt: The price of cobalt salt has fallen rapidly. During the conference, the downstream reported that the terminal consumption was not good, and it is expected that there will be no improvement in the year before. The price of SMM cobalt sulphate is 4.9-53,000 yuan/ton, and the average price is 4,500 yuan/ton lower than last week. The current price of SMM cobalt chloride is 62,000-67,000 yuan/ton, and the average price is 7,000 yuan/ton lower than last week. The price of SMM battery grade nickel sulfate is 29,500-30,000 yuan/ton, and the average price is 500 yuan/ton lower than last week.
Cobalt tetroxide: As the terminal digital market gradually goes out of the peak season, downstream purchases have a weakening trend. Lithium cobalt oxide manufacturers have strongly pressed down prices and transaction prices have fallen. It is expected that there is still room for decline in the market outlook. The current price of SMM cobalt tetroxide is 206,000 to 216,000 yuan/ton, and the average price is 14,000 yuan/ton lower than last week.
Ternary precursors: The price of precursors fell. The price of raw material nickel and cobalt continues to decline, and downstream orders are weak, and manufacturers have to accept lower prices downstream. The price of SMM ternary precursor (Type 523) was 92,000-9.7 million yuan/ton, and the average price was 5 million yuan/ton lower than last week. The price of the SMM ternary precursor (Type 622) was 103-107 million yuan/ton, and the average price was 30,000 yuan/ton lower than last week.
Lithium carbonate: The price of lithium carbonate remained flat this week. As downstream power batteries start a new round of production cuts, the demand for lithium carbonate has undergone structural changes. Although the output of lithium iron phosphate continues to hit new highs, since lithium iron phosphate batteries still account for less than 30% of the power market, and their demand for lithium carbonate is less than that of ternary materials, the overall demand for the upstream lithium salt market is The decline is obvious. At the same time, considering that next year's new energy vehicle market subsidies will further decline or be cancelled, it is imminent for OEMs to reduce costs, and psychological expectations for upstream raw materials prices continue to drop. According to SMM, the current market price of "quasi-electric carbon" has dropped to 52,000 yuan/ton. As the market enters the annual bill negotiation period in the fourth quarter, the price of lithium carbonate may continue to be under pressure. This week, the price of SMM battery grade lithium carbonate was 57-59 thousand yuan/ton, the average price was the same as last week. This week, the price of SMM industrial zero-grade lithium carbonate was 47,000 to 50,000 yuan/ton, and the average price was the same as last week.
Lithium hydroxide: Lithium hydroxide prices were flat this week. Affected by the rise in the price of nickel, one of the raw materials of the ternary material, the domestic high-nickelization process has been hindered. Leading battery companies have reduced their demand for high-nickel materials. The market demand environment for lithium hydroxide is not optimistic, and prices may continue to be under pressure. This week, the price of SMM battery-grade lithium hydroxide (coarse particles) was 61-64 thousand yuan/ton, the average price was the same as last week. Lithium cobalt oxide: The price of lithium cobalt oxide has dropped significantly. Although the quotations of major manufacturers have not yet been adjusted, the quotations of small and medium-sized manufacturers have fallen significantly, and it is expected that the price of lithium cobalt oxide will still have further downward pressure in the future. The price of SMM4.35V lithium cobalt oxide was 233,000-24.3 million yuan/ton, and the average price was 6,000 yuan/ton lower than last week.
Ternary materials: The price fluctuation range of ternary materials in the market has expanded, and the prices of conventional digital models have been greatly reduced, but it is still difficult to attract buyers. The prices of power products have also been gradually reduced as demand weakens. The price of SMM ternary material (Type 523) was 142-148 thousand yuan/ton, and the average price was 0.5 thousand yuan/ton lower than last week. The price of SMM ternary materials (type 622) was 1.6-165,000 yuan/ton, and the average price was down by 30,000 yuan/ton from last week.
Lithium iron phosphate: The price of lithium iron phosphate this week was the same as last week. Due to the strict cost control of the downstream industry chain, lithium iron phosphate material companies are currently mostly operating in a "quantity compensation" mode of operation. The current market prices are polarized. Some companies have been recognized by downstream customers due to their product quality, and their pricing is at a high level in the industry; while the remaining supply companies have fierce competition and may reduce prices for shipments. The price of SMM lithium iron phosphate (power type) this week was 42.5-45,500 yuan/ton, the average price was the same as last week.
Lithium manganate: The price of lithium manganate remained flat this week. As it enters mid-November, the downstream market of lithium manganate has gradually entered the traditional off-season. Due to the stable production situation of mainstream lithium manganate material manufacturers and the stable relationship with downstream customers, price adjustments are mainly affected by changes in raw materials. This week, the price of SMM lithium manganate (capacity type) was 26,000-32 million yuan/ton, and the average price remained unchanged from last week. This week, the price of SMM lithium manganate (power type) was 43,000-45 thousand yuan/ton, and the average price remained unchanged from last week.
Market outlook forecast: Market participants are generally pessimistic about the market outlook, and spot quotations continue to decline. It is expected that cobalt prices will still have considerable downward pressure in the short term. With the weak demand for downstream new energy vehicles and the massive reduction in power ternary lithium battery production, the demand for lithium salt has been weakened. The pressure of competition between domestic and foreign smelters has intensified, and the market outlook is still under downward pressure on prices.
