Cobalt prices fluctuated and fell this week

According to data monitoring from SunSirs, as of August 15th, cobalt prices were 268,000 RMB/ton, a decrease of 4.76% compared to August 6th, when cobalt prices were 281,400 RMB/ton. The import volume of cobalt raw materials had steadily increased, the cobalt market had sufficient supply, the sales of new energy vehicles had decreased month on month, downstream demand was weak, and the cobalt market had oversupplied. This week, cobalt prices fluctuated and fell.

Tales of new energy vehicles declined

According to data released by the China Association of Automobile Manufacturers, in July, the sales of new energy vehicles in China reached 780,000 units, a year-on-year increase of 31.6% and a month on month decrease of 3.23%. July is the off-season of the traditional car market, and the pace of production and sales slowed down. The overall market performance was relatively flat, with a year-on-year decline. New energy vehicles and automobile exports continued to develop well, but sales had slightly decreased compared to June month on month. The sales of new energy vehicles had declined, the demand for cobalt in the market had declined, and the pressure on cobalt prices to decline had increased.

According to data released by the China Automotive Power Battery Industry Innovation Alliance, in terms of production, in July, China's power battery production totaled 61.0 GWh, a year-on-year increase of 28.9% and a month on month increase of 1.5%. Among them, the production of ternary batteries was 20.4GWh, an increase of 17.2% year-on-year and 15.2% month on month; In terms of loading volume, in July, China's power battery loading volume was 32.2GWh, a year-on-year increase of 33.3% and a month on month decrease of 2.0%. The installed capacity of ternary batteries was 10.6GWh, an increase of 7.4% year-on-year and 4.8% month on month. In July, the production and loading of ternary batteries showed varying degrees of increase compared to the same month on month, and the increase in ternary batteries was significantly higher than that of power batteries. The demand for ternary batteries rebounded, and the support for cobalt demand from ternary batteries still existed.

Market outlook

According to data analysts from SunSirs, against the backdrop of sufficient and stable supply in the cobalt market, the growth of demand in the cobalt market had become a barometer of cobalt price trends. In July, the sales of new energy vehicles decreased month on month, and the demand in the cobalt market declined. However, the demand for ternary batteries rebounded, and the support for cobalt market demand still existed. It is expected that the decline in cobalt prices will slow down in the future, mainly fluctuating and consolidating.

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