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SunSirs: Demand Was Insufficient, Concerns Persisted, Cobalt Prices Continued to Fall
August 01 2022 09:46:33SunSirs(John)

Cobalt prices fluctuated and fell in July

According to the data monitoring of SunSirs, cobalt prices fluctuated and fell in July. As of July 31, the cobalt price was 332,700 RMB/ton, down 11.59% from the 376,300 RMB/ton cobalt price on July 1 at the beginning of the month. In July, concerns about the decline in demand in the cobalt market continued, and cobalt prices fluctuated and fell.

Cobalt market supply declined

According to the latest data from the customs website, China's total imports of cobalt raw materials in June 2022 totaled 7,000 tons of metal, down 1% month-on-month and 9% year-on-year. From January to June 2022, China's total import of cobalt raw materials is 45,800 tons of metal tons. Cobalt market supply was reduced, and cobalt prices were supported by a certain rise. Overseas prices continued to decline, affecting the sentiment of the domestic cobalt market. Manufacturers had a heavy wait-and-see mood, and domestic cobalt prices fell.

Insufficient demand in cobalt market

According to the China Academy of Information and Communications Technology, smartphone sales in China hit a new low in the second quarter of 2022, less than half of the historical peak in the fourth quarter of 2016. The domestic market sold 136 million units in the first half of the year, down 21.7% from the same period last year, setting the worst record since 2015. The consumption in the mobile phone market was weak, and the demand in the cobalt market declined.

From the production and sales data of new energy vehicles, it can be seen that the sales of new energy vehicles rose sharply, but the recovery speed was far slower than expected. Moreover, due to the impact of the epidemic, the start-up of auto manufacturers was severely restricted, and it was difficult for manufacturers to start construction in the future. In the market outlook, it is difficult for manufacturers to start construction to ensure continuity, and the reduction of corporate stocking data has exacerbated concerns about insufficient demand in the cobalt market.

Market overview

The data analyst of SunSirs believes that the import of cobalt raw materials has declined, and the supply of cobalt market has declined. Recently, the price and profit of metal cobalt are higher than that of cobalt salt, and the flexibility of electric cobalt trading and the characteristics of easy storage. Some intermediate cobalt salt factories reduced the output of cobalt salt and increased the output of electric cobalt, which alleviated the shortage of electric cobalt supply. On the demand side, demand for new energy vehicles, mobile phones, etc. was lower than expected, and the decrease in stocking by enterprises exacerbated the fear of insufficient demand. The overall cobalt market supply and demand are both weak, and the downward pressure on cobalt prices in the future is still there. The downward trend of cobalt prices is difficult to change in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com

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