This week, industry chain prices diverged. Lithium ore edged down alongside lithium carbonate, but mines continued to hold prices firm, making profit distribution across the industry chain a market focus. Supported by maintenance and tight spot order supply, lithium carbonate prices consolidated on a subdued note, while lithium hydroxide prices initially fell before rebounding. The cobalt industry chain remained generally under pressure—with weakening overseas quotations and sluggish off-season demand, refined cobalt, intermediate products, and cobalt salt prices continued to weaken, and the price spread between buyers and sellers widened. Nickel sulphate edged down, with the market still primarily focused on destocking; ternary cathode precursor prices declined due to weaker nickel and cobalt salt prices, while ternary cathode material prices remained basically stable. LFP prices proved resilient, supported by rising processing fees, with August production schedules continuing to grow and high-quality capacity remaining tight. Artificial graphite prices rose, the supply-demand balance for separators stayed in tight balance, and electrolyte prices were pushed up by raw material cost transmission. Supply of key materials for sodium-ion batteries remained tight, while recycling-side transactions were subdued. On the terminal side, EV and ESS demand maintained resilience, though the consumer market recovery remained limited. Looking ahead, the focus will be on peak season stockpiling and demand realization.

The industry chain continued to be in the doldrums this week. Overseas spot cargo and futures quotations declined, and domestic salt and intermediate product prices remained weak, intensifying bearish market sentiment. Mainstream smelters lowered their refined cobalt quotations to 340,000 yuan/mt, while downstream procurement during the off-season remained focused on small-volume rigid demand. Trading in the intermediate product market was sluggish, with miners’ indicative prices at approximately $21–21.5/lb, while downstream psychological price levels had dropped to around $18–19/lb, further widening the price spread. Cobalt sulphate, cobalt chloride, and Co3O4 all faced downward price pressure due to weak demand, inventory pressure, and cost-related bargaining, while the actual transaction price center for cobalt powder also edged lower. Ternary cathode precursor prices declined in line with weaker nickel and cobalt salt prices, though orders from top-tier players for overseas and power battery applications performed relatively well. Ternary cathode material prices were basically stable, with orders in August showing steady growth. Demand recovery in the LCO market remained slow, with production and sales still at low levels. The market in the short term is expected to continue grappling with off-season demand, Q3 stockpiling, and raw material price changes.

As of now, the FOB price of Indonesian MHP nickel is $15,273/mt Ni, and the FOB price of Indonesian MHP cobalt is $47,840/mt Co. The MHP payables (against the SMM battery-grade nickel sulphate index) is 82.5-83.5, and the MHP cobalt payable indicator (against SMM refined cobalt (Rotterdam warehouse)) is 90. The FOB price of Indonesian high-grade nickel matte is $15,700/mt Ni.

On August 7, SMM battery-grade nickel sulphate average price remained stable.

【SMM Tungsten Analysis】 SMM August 6: On August 5, major Chinese tungsten enterprises released their long-term contract prices for the first half of August, among which the price for 55% wolframite concentrates was set at 412,000 yuan/mt, up 1,000 yuan/standard tonne from the second half of July, and the APT long-term contract price was simultaneously raised by 1,000 yuan/mt to 606,000 yuan/mt.

Spot‑price declines for cobalt metal widened this week, with overall market sentiment weakening. On the supply side, mainstream smelters cut their ex‑factory offers to RMB 340,000 per tonne, while most small‑and‑medium‑sized smelters have largely suspended quoting due to loss‑making pressures. On the demand side, downstream players remain in the summer‑shutdown cycle with muted purchasing appetite, only conducting small‑volume restocking for rigid‑demand needs. This week’s price drop was mainly sentiment‑driven. Overseas spot and futures quotation platforms lowered their offers simultaneously. Previously resilient overseas prices softened, weighing notably on domestic market sentiment. Coupled with persistent price weakness of Chinese cobalt salts and cobalt intermediate products, bearish market sentiment has gradually intensified. Some previously on‑hold stockholders started offloading stocks, adding further downward price pressure. Overall, the market is in cobalt’s traditional consumption off‑season with limited demand‑side support. Combined with softer overseas prices and bearish sentiment, prices may stay weak in the near term.