SunSirs: Both Supply and Demand Were Weak, and Domestic Cobalt Prices Fell in Shock in December

In December, domestic cobalt prices fell in shock

According to the data monitoring of SunSirs, as of December 31, the domestic cobalt price was 323,400 RMB/ton, down 3.20% from 334,100 RMB/ton on December 1. The supply and demand of the cobalt market were weak, the decline of the international cobalt price was accelerating, the cobalt salt price was weak and downward, and the domestic cobalt price fell in shock.

MB price fluctuated and fell

It can be seen from the MB price trend chart that in December, the MB price fell in shock, the decline of the international cobalt market accelerated, the domestic cobalt market was negative, and the domestic cobalt price was dragged downward.

The import volume of cobalt raw materials decreased

From the trend chart of cobalt raw material import, it can be seen that due to the strike at South Africa ports, domestic cobalt raw materials were insufficient in November. In November, the import of cobalt raw materials decreased significantly year on year, the supply of cobalt market decreased, the downward pressure on cobalt prices weakened, and the upward momentum increased. From January to November, the cumulative import volume of cobalt raw materials increased year on year, and the overall supply of cobalt market was sufficient.

The demand in cobalt market Declined

In recent years, the performance of mobile phones has been excessive, and the innovation of new products has been reduced, resulting in a lack of momentum for consumers to change phones. Consumer demand for mobile phones continues to decline, and the domestic smartphone replacement cycle is expected to increase to 34 months. According to the latest report of IDC, it is estimated that in 2023, the shipment volume of China's mobile phone market will decline 0.9% year on year, narrowing the decline; Although the epidemic prevention policy is relaxed, the national consumption level still needs a recovery period. 3C market consumption is low, and cobalt market demand is low.

Overview and prospect

According to the data analysts of SunSirs, the international cobalt price fell in December, the cobalt salt price fell, and the domestic cobalt market was negative. In terms of supply and demand, although the import volume of cobalt raw materials declined significantly, the demand of cobalt market was sluggish. The supply of cobalt market was still sufficient in the short term, and the support for the rise of cobalt price was insufficient. It is expected that the cobalt market will be lowered weakly in shock in the future.

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