SunSirs: Cobalt Demand Slumps, Inventory Enters the Market, Price Fell

1. Trend analysis

According to SunSirs data monitoring, the cobalt market fell volatilely this week, breaking the steady trend of the cobalt market since April, and the cobalt price fluctuated steadily. As of April 24, the price of cobalt was 239,333.33 yuan / ton, which was a decrease of 3.10% from the average price of cobalt price of 247,000.00 yuan / ton at the beginning of the week.

2. Market conditions

Summary of demand

Cobalt lithium battery demand market is mainly divided into mobile phone consumption and new energy vehicle demand. In terms of mobile phone demand, domestic mobile phone manufacturers have basically resumed operation, but the operating rate is not ideal. Due to COVID-19, imports and exports from countries around the world are restricted. Most consumers in the consumer market and power market have ceased production. Demand has decreased accordingly. The export orders of some battery factories in April will drop sharply, and the production of various battery factories will be reduced, and their demand for cobalt materials will also be relatively reduced.

In the new energy vehicle market, only some domestic battery factories export to foreign car companies, while other power battery factories mainly focus on the domestic market. However, the consumption of new energy vehicles in the domestic market showed a freezing point, and the demand for cobalt consumption fell to a low level. The decrease in demand for the cobalt city is bad for the cobalt market.

Cobalt inventory (unit: tons)

As can be seen from the table, the inventory of cobalt rose sharply this week, and cobalt stocks entered the market in large quantities. The supply of cobalt has greatly increased, which is negative for the price of cobalt, and the downward pressure on cobalt city has increased.

3. Outlook

SimSirs data analysts believe that this week's cobalt market demand continues to be sluggish, but on the supply side, a large amount of cobalt stocks have entered the market, cobalt market supply has increased, and demand is sluggish. Overall, the recent weak cobalt market has insufficient motivation to increase, but because the cobalt price is at a low level, the risk of cobalt price decline is low. Cobalt market is expected to fluctuate and maintain stability.

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

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