SunSirs: The Consumption of New Energy Vehicles Slowed Down, and Cobalt Prices Had Slightly Declined This Week

Cobalt prices had slightly declined this week

According to the cobalt market analysis system of SunSirs, as of October 26th, the cobalt price was 268,800 RMB/ton, a decrease of 1.18% compared to October 20th, when the cobalt price was 272,000 RMB/ton. The news of cobalt storage had stimulated the rise of cobalt prices, but the growth of new energy vehicle consumption slowed down, and cobalt market demand was less than expected. This week, cobalt prices had slightly declined.

The growth in demand for new energy vehicles Slowed down

LG New Energy released its third quarter financial report, with revenue increasing by 7.5% year-on-year. However, due to slowing demand in Europe, automakers adjusting production, and metal prices falling, sales in the quarter decreased by 6% month on month. Following Musk's concerns that high interest rates may affect sales, power battery giant LG New Energy also raised concerns that sales of electric vehicles are expected to slow down. An increasing number of automakers, including Tesla, General Motors, and Ford, are cautious about the demand for electric vehicles, fearing that high interest rates will increase financing costs and that slowing growth in major global economies may also hit car demand. The slowdown in demand for new energy vehicles had come faster than expected, especially in the high-end electric vehicle market. The expected slowdown in demand in the cobalt market weakened the support for cobalt price increases, and cobalt prices slightly declined.

Overview and outlook

According to data analysts from SunSirs, the national storage news stimulated a brief increase in demand in the cobalt market, and domestic cobalt prices have rebounded and risen. However, the growth of new energy vehicle sales slowed down, and the demand growth in the cobalt market was less than expected, resulting in a slight decline in cobalt prices. Overall, the stable supply and demand in the cobalt market are lower than expected, and the cobalt prices are expected to fluctuate and consolidate of in the future.

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