Cobalt prices first fell and then rose this week

This week, domestic cobalt prices first fell and then rose, and the overall cobalt market fluctuated and stabilized. As of November 23, the cobalt price was 425,500 yuan/ton, a slight drop of 0.19% from the 426300.00 yuan/ton cobalt price on November 12. Cobalt prices first fell and then rose this week, and the cobalt market stopped falling and picked up.

October ternary precursor exports decreased month-on-month

In October 2021, China's export volume of ternary precursors was 12,767 tons (including NCA), a decrease of 8.8% month-on-month and an increase of 28% year-on-year. The export volume of ternary precursors in October decreased compared with September, mainly because part of the export volume in October was advanced to September for delivery. At present, the consumer demand for new energy vehicles in Europe and the United States is still rising. In the fourth quarter, the leading Korean ternary material companies have increased their purchase orders for precursors. It is expected that the export volume of ternary precursors will increase from November to December. The demand for ternary materials continues to rise, and the demand for cobalt is rising, and the momentum for rising cobalt prices is increasing.

Cobalt mine production is expected to increase

In May, Glencore Co., Ltd. reported that the Mutada SX-EW mine restarted, and it is expected that the mine will be put into operation by the end of the year. The project is expected to restore 20,000 tons of cobalt production per year. China Molybdenum Co., Ltd. has begun plans to increase its production capacity at Tenke Fungurume by 17,000 tons/year by 2023. As of July, the expansion project is in the pre-commissioning stage, and the mine will increase global supply by 24,000 tons/year. The restart and expansion plan of the cobalt mine has increased the supply of the cobalt market and increased the pressure on the price of cobalt to fall.

International cobalt prices have risen sharply

In November, the LME cobalt price fluctuated sharply, and the international cobalt price rose, which was positive for the domestic cobalt market, and the domestic cobalt price was stimulated to increase the momentum.

Market summary

The international cobalt price has risen sharply, stimulating the rise of the domestic cobalt market. The cobalt mine restarts the production increase plan to increase the supply of cobalt ore, and the cobalt price will be affected or short-term decline. The domestic ternary material export briefly fell, and the domestic cobalt price fell temporarily; , The demand for ternary materials is still rising, and the momentum for rising cobalt prices still exists. In general, the supply of cobalt market has increased, demand is strong, and supply and demand are basically balanced. There is no room for cobalt prices to soar and plummet. Cobalt prices are expected to fluctuate slightly in the future.

Related listed companies: Huayou Cobalt (603799), Hanrui Cobalt (300618), Luoyang Molybdenum (603993).

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