SunSirs: Electricity Curtailment in Sichuan Stimulated Cobalt Prices to Rise

Cobalt prices rose in shock this week

According to the data monitoring of SunSirs, the cobalt price fluctuated and rose this week. As of August 22, the cobalt price was 346,400 RMB/ton, an increase of 4.12% from the 332,700 RMB/ton cobalt price on August 15 at the beginning of the week. Electricity curtailment in Sichuan caused cobalt prices to fluctuate and rise this week.

Electricity curtailment in Sichuan stimulated new energy heating

Affected by the increase in high-temperature electricity consumption and the lack of hydropower generation in drought, Sichuan Province has recently cut electricity across the board. Recently, Sichuan Province announced that it will expand the scope of restricting the use of electricity by industrial enterprises to allow electricity to be used by the people. It was previously expected to last from August 15 to 20. Notice on August 21st: The time for the blackout will be extended to August 25th. Ningde Times' Sichuan battery factory stopped production due to power cuts, and lithium salt companies in Sichuan stopped production due to power cuts. The Ningde battery factory has reduced production, the supply of new energy batteries has decreased, and the production reduction of lithium salt companies has stimulated lithium salt prices to rise. Overall, power cuts in Sichuan stimulated the heating up of the new energy industry chain.

Market overview

The data analyst of SunSirs believes that last week's purchase and storage news stimulated the price of cobalt to rise, and the cobalt market was stable this week, but the high temperature and drought in Sichuan filled a fire for the new energy market. Affected by the limited power supply, lithium battery companies have stopped production, and many lithium salt manufacturers have stopped production. The price of lithium salt and battery has been stimulated to rise, and the cobalt market has been stimulated to rise. In the future, as the high temperature fades and the power restrictions are lifted, the start-up of enterprises is bound to resume, the supply of the new energy industry chain will return to normal, the rising support of the cobalt market cannot be sustained, and the upside of the cobalt market is limited. It is expected that the cobalt price will stabilize in the future.

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