Chinese cobalt prices soar after Spring Festival

After the holiday, domestic cobalt prices rose sharply, and the cobalt market rose. As of February 14, the average cobalt price was 529,700 yuan/ton, an increase of 5.43% from the average cobalt price of 502,400 yuan/ton on February 1 at the beginning of the month. The off-season of new energy vehicles is not short, and the price of cobalt has risen sharply after the festival.

International cobalt prices rise

After the holiday, the LME cobalt price resumed rising, and the international electrolytic cobalt price rose, which is good for the domestic cobalt market, and the domestic cobalt market has increased momentum.

The off-season of new energy vehicles is not short

Judging from past experience, January is usually the off-season for new energy vehicle sales due to the combination of the Spring Festival holiday and the impulse factors of manufacturers in December of the previous year. In addition, due to the subsidy decline in 2022, the consumption of new energy vehicles is expected to decline significantly. However, judging from this year's sales, the new energy vehicle market in January was not short in the off-season, and new energy brands such as BYD, GAC Aian, and Xiaopeng Motors all achieved sales growth in January. Taking BYD as an example, its sales of 92,900 new energy vehicles in January were second only to 93,945 in December last year, ranking second in the historical monthly sales list. The sales of new energy vehicles exceeded expectations, the demand in the cobalt market increased, and the rise in cobalt prices was greatly supported.

Market overview

The off-season of new energy vehicles is not short, and the rising demand in the cobalt market stimulates the domestic cobalt price to soar, and the resurgent MB cobalt price is good for the domestic cobalt market. In the future, the demand in the cobalt market has increased more than expected, and the support for the rise in cobalt prices has increased.

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

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