Sales decline, cobalt prices fluctuate and fall this week

Cobalt prices fluctuated and fell this week

According to data monitoring from Business Society, as of August 15th, cobalt prices were 268000 yuan/ton, a decrease of 4.76% compared to August 6th, when cobalt prices were 281400 yuan/ton. The import volume of cobalt raw materials has steadily increased, the cobalt market has sufficient supply, the sales of new energy vehicles have decreased month on month, downstream demand is weak, and the cobalt market has oversupplied. This week, cobalt prices have fluctuated and fallen.

Decline in sales of new energy vehicles

According to data released by the China Association of Automobile Manufacturers, in July, the sales of new energy vehicles in China reached 780000 units, a year-on-year increase of 31.6% and a month on month decrease of 3.23%. July is the off-season of the traditional car market, and the pace of production and sales has slowed down. The overall market performance is relatively flat, with a year-on-year decline. New energy vehicles and automobile exports continue to develop well, but sales have slightly decreased compared to June month on month. The sales of new energy vehicles have declined, the demand for cobalt in the market has declined, and the pressure on cobalt prices to decline has increased.

According to data released by the China Automotive Power Battery Industry Innovation Alliance, in terms of production, in July, China’s power battery production totaled 61.0 GWh, a year-on-year increase of 28.9% and a month on month increase of 1.5%. Among them, the production of ternary batteries was 20.4GWh, an increase of 17.2% year-on-year and 15.2% month on month; In terms of loading volume, in July, China’s power battery loading volume was 32.2GWh, a year-on-year increase of 33.3% and a month on month decrease of 2.0%. The installed capacity of ternary batteries was 10.6GWh, an increase of 7.4% year-on-year and 4.8% month on month. In July, the production and loading of ternary batteries showed varying degrees of increase compared to the same month on month, and the increase in ternary batteries was significantly higher than that of power batteries. The demand for ternary batteries rebounded, and the support for cobalt demand from ternary batteries still exists.

Overview and outlook

According to Bai Jiaxin, a data analyst at Business Society, against the backdrop of sufficient and stable supply in the cobalt market, the growth of demand in the cobalt market has become a weather vane for the trend of cobalt prices. In July, the sales of new energy vehicles decreased month on month, and the demand in the cobalt market has declined. However, the demand for ternary batteries has rebounded, and the support for cobalt market demand still exists. The expected decline in cobalt prices in the future will slow down, causing fluctuations and consolidation.