Cobalt prices fell sharply after the festival

According to the data monitoring of business society, the cobalt market continued its decline since March after the festival, and the cobalt price fell sharply. As of May 10, the average price of cobalt was 524200 yuan / ton, down 2.93% from 540000 yuan / ton on May 1 at the beginning of the month; Compared with the cobalt price of 575200 yuan / ton on March 8, it fell by 8.87%. The supply and demand of the cobalt market were both weak, and the cobalt price continued its decline in March.

Tesla increases the layout of battery materials

In Tesla’s 2021 impact report, Tesla announced that the company’s battery material recovery will increase to 1500 tons of nickel, 300 tons of copper and 200 tons of cobalt in 2021. Tesla and other major automobile enterprises have made greater efforts to lay out battery material recycling, making up for the insufficient supply of cobalt raw materials and alleviating the pressure of rising cobalt prices.

Four departments strengthened commodity market supervision and price monitoring and early warning

The national development and Reform Commission and other four departments issued a notice on the key work of cost reduction in 2022. The notice proposed to strengthen the supply and price stability of important raw materials and primary products. We will continue to ensure the supply and price of energy and important raw materials, and ensure the people’s livelihood and the normal production and operation of enterprises. Strengthen the connection between production and demand of raw materials and promote the connection and linkage between upstream and downstream of the industrial chain. We will further strengthen the supervision of the commodity market and strengthen the monitoring and early warning of commodity prices. The state has strengthened the supervision and price monitoring of the bulk commodity market, weakened the hype of bulk commodity prices in the future, seriously evaporated water in the domestic cobalt market, and the cobalt price is expected to return to stability.

Sales of new energy vehicles fell month on month in April

According to the data of the Travel Association, the retail sales volume of new energy passenger vehicles reached 282000 in April, with a year-on-year increase of 78.4% and a month on month decrease of 36.5%. The sales volume of new energy passenger vehicles decreased month on month, the demand expectation of cobalt Market decreased, the support for the rise of cobalt price weakened, and the pressure on the decline of cobalt price increased.

Market Overview

Bai Jiaxin, a data analyst at business news agency, believes that cobalt prices fell sharply after the festival. The main reasons are that the sharp decline in the price of cobalt salt makes the price of metal cobalt follow the decline, the state has strengthened its monitoring of commodity prices, and the speculation heat of cobalt market has weakened. Affected by the epidemic situation and traffic control in Shanghai, the sales volume of new energy vehicles fell sharply month on month in April, the demand of cobalt market was poor, the effect of resumption of production and work in the automobile industry was less than expected, the demand growth of cobalt market was insufficient, the supply was relatively stable, and the pressure on the decline of cobalt price increased. In the future, there is still strong demand in the cobalt market, the space for the decline of cobalt price is limited, the demand is less than expected, and the downward pressure of cobalt price still exists. It is expected that the future cobalt price will fluctuate and adjust at about 500000 yuan / ton.