SunSirs: Demand Recovery is still Difficult to Support the Rise of Chinese Cobalt Market

1. Trend analysis

According to the data monitoring of the business agency, the cobalt price fluctuated and fell in November, and the cobalt market weakened. As of November 16, the price of cobalt was RMB 267,500.00/ton, a decrease of RMB 268,666.66/ton from the beginning of the month (November 1), a decrease of 0.43%.

2. China's mobile phone production and sales data

According to statistics from the China Academy of Information and Communications Technology, the total domestic mobile phone market shipments in October were 26.153 million units, a year-on-year decrease of 27.3%; the total domestic mobile phone market shipments from January to October totaled 252 million units, a year-on-year decrease of 22.1%. In October, domestic mobile phone sales rebounded month-on-month but fell sharply year-on-year. Demand in the cobalt market rebounded but still not enough to support the rise in cobalt prices.

3. China's new energy vehicle market

According to statistics from the China Automobile Association, in October, the production and sales of new energy vehicles were 167,000 and 160,000, respectively, up 69.7% and 104.5% year-on-year. From January to October, the production and sales of new energy vehicles were 914,000 and 90.1 respectively. 10,000 vehicles, a year-on-year decrease of 9.2% and 7.1% respectively. From July to October, the production and sales of new energy vehicles set a new historical record for April, and the sales of new energy vehicles in a single month continued to rise. The market for new energy vehicles rebounded. However, the production and sales of new energy vehicles for the whole year still fell sharply year-on-year, and the market for new energy vehicles rebounded. Not enough to support the recovery of cobalt prices.

4. Market summary

SunSirs data analysts believe that mobile phones rose month-on-month in October, sales of new energy vehicles rose sharply, and demand in the cobalt market rebounded. However, in the global market, due to the impact of the epidemic, sales of major mobile phone and new energy vehicle markets in Europe and the United States have plummeted, and demand for cobalt has generally declined. The recovery of domestic cobalt market demand is difficult to change the overall market trend of weak cobalt demand in the global cobalt market, and the cobalt price rise has insufficient momentum.

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

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