SMM News on May 30:
From an overall data analysis perspective, the market procurement situation in May 2025 declined compared to April 2025. As of April 2025, the total recycling volume (based on black mass) in SMM's recycling market reached 20,592 mt, down approximately 16.2% MoM.
On the demand side, most hydrometallurgical plants opted for a semi-shutdown status amid the continuous decline in nickel, cobalt, and lithium chemical prices. Most ternary and LFP hydrometallurgical plants reduced their procurement volumes this month, only consuming basic inventory. Given the market's pessimistic outlook on subsequent lithium chemical prices, they exercised caution in purchasing LFP black mass, resulting in very sluggish market transactions. It is expected that as hydrometallurgical plant inventories decrease, procurement will gradually resume in June. On the supply side, the psychological selling prices of grinding mills and traders loosened somewhat due to the continuous decline in salt prices, with black mass prices generally following the downward trend of salt prices, albeit at a slower pace. Additionally, some grinding mills, with their current profits still below the surplus line, chose to hold back from selling, awaiting a subsequent market recovery. Market transactions remained sluggish.
From a material perspective, salts such as nickel sulphate, cobalt sulphate, and lithium carbonate continued to decline in May. The price of lithium carbonate fell continuously due to a supply surplus, with industrial-grade lithium carbonate prices once dropping below 60,000 yuan/mt. Amid the current supply surplus, more grinding mills and hydrometallurgical plants are focusing on changes in national policies, such as the US tariff hikes, trade-in policies, and the draft for comments on black mass imports and exports. It is anticipated that prices and recycling volumes in May will fluctuate in response to policy changes and downstream demand.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Xu Ying 021-51666707
Lv Yanlin 021-20707875
Liu Yujun 021-20707895
Yu Xiaodan 021-20707870
Zhou Zhicheng 021-51666711
Zhang He 021-20707850
