Cobalt prices surged in June

According to data monitoring from Business Society, cobalt prices increased significantly in June. As of June 30th, the cobalt price was 290200 yuan/ton, an increase of 13.27% compared to June 1st, when the cobalt price was 256200 yuan/ton. Domestic cobalt prices have skyrocketed, can the future cobalt market continue to rise?

Rising sales of new energy vehicles

According to data released by the China Automobile Association, in May, China’s production and sales of new energy vehicles completed 713000 and 717000 units respectively, with a market share of 30.1%. According to data from the China Passenger Transport Association, in May, the wholesale sales of new energy passenger vehicles in China reached 673000 units, with a wholesale penetration rate of 33.7% for new energy vehicle manufacturers and a retail penetration rate of 33.3% for new energy vehicles. In May, China exported 92000 new energy passenger vehicles, accounting for 30.5% of passenger vehicle exports. The world’s automobile industry will further develop towards electrification, and new energy vehicles will become the mainstream. The market share of new energy vehicles and new energy vehicle exports exceeds 30%. The concentration trend of the new energy vehicle industry is obvious, and the new energy vehicle industry has entered a rapid development zone. The demand for cobalt in the cobalt market is steadily growing, and the driving force for cobalt price increase is increasing.

According to data released by the National Bureau of Statistics, the profit of the automotive manufacturing industry increased by 1.02 times in May; The electrical and mechanical industry was driven by new energy products such as photovoltaic equipment and lithium-ion batteries, resulting in a profit growth of 27.3%; The profit of the new energy vehicle related industry has increased significantly, and the future market is expected to be positive. The demand for cobalt in the market is expected to rise.

International cobalt prices fluctuate and rise

From the trend chart of MB cobalt prices, it can be seen that in June, MB cobalt prices stopped falling and rose, international cobalt prices fluctuated and rose, and domestic cobalt manufacturers and traders followed suit.

Overview and outlook

According to Bai Jiaxin, a data analyst at Business Society, the production and sales of new energy vehicles are booming, and the sales of the automotive industry are generally growing rapidly. The stocks of automotive companies are strengthening, and the profits of the automotive manufacturing industry are increasing. Downstream profits are increasing, and there is greater room for cobalt prices to rise; The policy of reducing the purchase tax on new energy vehicles has been extended, and the production and sales of new energy vehicles are expected to increase. The demand for cobalt in the future market may exceed expectations, and 3C and intelligent electronic products have rebounded. The proportion of ternary batteries has increased, and the demand for cobalt has increased. The situation in some parts of the Democratic Republic of Congo is unstable, and the supply of cobalt raw materials may be limited. The news of domestic cobalt storage has stimulated demand in the cobalt market. In the future, with a decrease in supply and a rebound in demand, cobalt prices will fluctuate and rise. Or hit the 300000 yuan mark.