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SunSirs: Confidence was Affected by Factory Closure, Colbat Market Shocked and Adjusted

March 23 2020 14:31:30     SunSirs (Linda)

1. Trend analysis

According to the data monitoring of SunSirs, cobalt prices fluctuated sharply last week, and the decline in the cobalt market could not be stopped. As of March 20, the cobalt price was quoted at 256,500.00 yuan / ton, down from the average cobalt price quoted at 259,166.67 yuan / ton at the beginning of the week, a decrease of 1.03%. The closure of factory shops affected the confidence of the cobalt market, the panic in the cobalt market spread, and the price of cobalt fluctuated and fell.

2. MB cobalt prices fell sharply

From the perspective of MB cobalt price trend, MB cobalt price plummeted this week. The decline in the international cobalt market caused further damage to the domestic cobalt market, and the domestic cobalt market was bearish.

3. Apple will close all retail stores outside China

In the afternoon of March 14th, Beijing time, Apple's official website announced today that all stores (retail stores) in China (Greater China) have all reopened and decided to close other parts of the world before Friday (March 27). All stores in the area! The closure of Apple Mobile's stores is bound to affect mobile phone sales and negatively affect cobalt demand.


4. Tesla temporarily closes California and New York plants

Tesla (NASDAQ: TSLA) announced on Thursday that the company's Fremont, California, and Buffalo, New York, solar panel factories will temporarily suspend production. Tesla's closure of the plant further undermines demand for the cobalt market. Cobalt market spread negatively.

5. Market outlook

Business analyst from SunSirs believe that the global economic weakness is pervasive, multinational companies have suspended or reduced their production, and affected sales stores have also been closed. The closure of production enterprises and sales stores has a major negative effect on the demand for the cobalt market. Without a significant reduction in supply, the downward pressure on the cobalt market has increased, and the short-term market outlook for the cobalt market has been near zero, and the negative outlook has increased. Although 5G still stimulates consumption in the long run, and the trend of new energy vehicles, the cobalt market is still optimistic for a long time. However, the city of Cobalt was flooded with a basin of cold water, and the cobalt market's rising cycle was postponed indefinitely. The short-term cobalt market is more negative than positive, and the cobalt price is bearish in the short-term.

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

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