Latest Update in the SMM Cobalt Market

A cobalt enterprise stopped production due to force majeure, impacting the supply of cobalt in the market by about 500 tons per month. This has led to a small shortage in the short term, affecting the prices of electrolytic cobalt. The shutdown is expected to last until the end of April, and the market will continue to be monitored.

Due to demands from local communities, the Supreme Court of Catamarca Province in Argentina has ordered the suspension of the expansion construction and permitting for two major projects of the globally renowned lithium producer Arcadium Lithium - the Fenix project and the Sal de Vida project - until comprehensive environmental impact assessments are completed.

As manufacturers resume work in March and prepare for the subsequent 430 grid connection, market transactions gradually recover. Although the current changes in the cost of energy storage cells are small, in the context of excess supply and demand, manufacturer competition may further intensify, and energy storage Battery cell prices may still have room to fall.

On March 18th, lithium carbonate futures increased by 3.00% to 116,900 yuan/ton, with spot prices mildly rising to an average of 112,550 yuan/ton, amidst strategic market adjustments.

The initial term of the agreement is 3 years, with an expiration date of March 10, 2027, replacing the recycling agreement announced by both parties in September 2022.

HBIS Group Co., Ltd (HBIS Group) is one of the largest steel material manufacturing and comprehensive service providers worldwide.

In the week ending March 14, Series 5, 6, and 8 precursor prices rose slightly due to increasing raw material costs. Precursor firms raised their prices, but difficulty in passing on these increases kept transaction prices stable. Suppliers, affected by high nickel sulphate prices, are cautious with accepting orders and are aligning production with sales. Demand is supported by optimism in the nickel sulphate market and encouraging March vehicle sales, leading to active inquiries. However, downstream buyers are resistant to costly precursors, limiting the potential for substantial price increases in ternary precursors.

In the week ending March 14, refined cobalt prices slightly increased. Production is stable, demand recovery is slow, and with short-term supply constraints and high raw material costs, spot market prices are firm, leading to a slight rise due to immediate-need transactions.