SMM January 8:
This week, prices for cobalt sulphate, nickel sulphate, and lithium carbonate continued to rise.
Recently, spot and futures prices for lithium carbonate continued to increase, and this month remained a period of just-in-time procurement before the Chinese New Year. LFP black mass prices per % lithium rose WoW, following the increase in lithium chemicals prices. Upstream grinding enterprises, after observing lithium carbonate supply-demand dynamics and policies, were relatively optimistic about future prices. Prices also adjusted with futures, showing a strong upward trend. Taking LFP pole piece black mass as an example, current prices were 5,400-5,800 yuan/mtu, up WoW. For ternary black mass, the nickel and cobalt payables currently stood at 77-79%, up 1% WoW, while lithium payables were 76-78%, also rising WoW. The main reasons were the continued increase in nickel sulphate and cobalt sulphate prices this week, coupled with relatively limited supply of LCO black mass. Currently, most enterprises held limited cobalt inventory, and after clearing old stock, they had to purchase new material from smelters. Producing cobalt-based products from recycled black mass now offered some profit, leading several enterprises to shift production lines in H2, further tightening supply of pure cobalt black mass and pushing prices higher. Meanwhile, downstream LFP hydrometallurgical enterprises engaged in financial activities such as options and futures hedging, with profitability improving compared to before. The price increases for chemical salts gradually passed through to the black mass side, driving up payables and prices per % lithium for various material types.
SMM New Energy Research Team
Cong Wang 021-51666838
Rui Ma 021-51595780
Disheng Feng 021-51666714
Yanlin Lv 021-20707875
Zhicheng Zhou 021-51666711
