SunSirs: Cobalt Prices Fluctuated and Fell This Week Due to Weak Demand

The domestic cobalt price fluctuated and fell this week

According to data monitoring by SunSirs, as of March 17, the cobalt price was 304,700 RMB/ton, down 2.21% from 311,600 RMB/ton on March 10. Cobalt market demand was weak, and domestic cobalt prices fell back in a volatile manne

Global smartphone shipments expected to decline

According to the quarterly tracking report of International Data Corporation (IDC) mobile phones, it is still difficult to be optimistic about the smartphone market in 2023. In 2023, the shipment volume of the global smartphone market will be less than 1.2 billion units, a year-on-year decrease of 1.1%; The shipment volume in the Chinese market is expected to be only 283 million units, down 1.1% year-on-year. Inflation and uncertainty in the global economy have weakened the recovery of consumer demand. The global and Chinese smartphone markets have rebounded, but they are still facing serious threats. The recovery of mobile phone market consumption is less than expected. The expected decline in mobile phone shipments in 2023 and the expected decline in cobalt market demand are expected.

Sales of wearable devices plummeted

According to the latest report by market research agency Canalys, the global wearable bracelet market shipped 50 million units in the fourth quarter of 2022, a year-on-year decrease of 18%. Due to factors such as Christmas, the fourth quarter is usually the peak season. As a "new upstart" in consumption, smart wearable devices are the "second battleground" in the mobile phone market. Smart watches have been in a steady growth state, but in the fourth quarter of the traditional peak season of 2022, there was an abnormal two-digit decline. In the fourth quarter, sales of smart watches of various major brands experienced a significant decline to varying degrees. The downstream consumption of cobalt in the market was weak, and the downward pressure on cobalt prices increased.

Market outlook

Data analysts from SunSirs believe that the sales of mobile phones were less than expected, the sales of wearable devices declined significantly, the demand for cobalt in the market was weak, and the price of cobalt fell in a volatile manner.

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