Trend analysis

According to data monitoring by SunSirs: After the New Year's Day, the Spring Festival is about to stock up, the cobalt market is very good, and the cobalt price soars. As of January 6, the cobalt price was 289,666.66 yuan/ton, which was a 6.23% increase from the 272,666.66 yuan/ton on January 1. In 2021, the cobalt market will start the year well, and cobalt prices will skyrocket.

The situation in Africa affects the supply of cobalt market

The Secretary-General's Special Representative for the Democratic Republic of the Congo, Leila Zerrougui, pointed out at the Security Council’s briefing on the situation in the Democratic Republic of the Congo that political tensions in the Democratic Republic of the Congo have intensified, including rifts within the ruling coalition and the president's dissolution of the National Assembly. Threat. Increased political risks in the Democratic Republic of Congo will affect the supply of cobalt market, and pressure on cobalt prices will increase.

Since the end of November, the African epidemic has worsened again. Many African countries, including Namibia, Congo (Kinshasa), South Africa, Senegal, and Zimbabwe, have tightened epidemic control measures in response to the worsening of the epidemic. The worsening of the epidemic is bad for the supply of the cobalt market, and the transportation risks have increased, the freight cost of cobalt ore has increased, and the momentum of cobalt prices has increased.

New round of economic recovery policy stimulus

The European Central Bank announced its interest rate decision, keeping interest rates unchanged, adding 500 billion euros to the emergency anti-epidemic bond purchase plan (PEPP) to 1.85 trillion euros, extending the deadline for 9 months, and extending the emergency anti-epidemic bond purchase (PEPP) plan to at least 2022 In March 2008, the quantitative easing policy will continue until shortly before interest rates rise. The Fed extended the termination date of the Main Street loan program from 2021 to January 8, and the United States launched a second round of fiscal stimulus plan of US$900 billion. Countries around the world have successively launched a new round of economic stimulus policies, which will further increase market flows and stimulate economic recovery. The production and sales of new energy vehicles are expected to continue to increase. The demand for the cobalt market is expected to rebound and the cobalt market is positive.

Market summary

SunSirs data analysts believe that the Spring Festival is about to stock up, the domestic cobalt market demand will rise slightly in the short-term, and the cobalt price will have a greater momentum. On the supply side, affected by the worsening epidemic in Africa, the logistics and transportation in Africa are restricted, and the political risks in the Democratic Republic of Congo have increased, affecting the supply of cobalt ore. The upward pressure on the cobalt market surged. In the context of the intensified global economic recovery, the production and sales of the new energy automobile industry are expected to continue to increase, and the production and sales of mobile phones are expected to resume. The global demand for the cobalt market is expected to increase sharply in 2021, and the cobalt market will have huge momentum in the future. On the whole, the supply of cobalt may be short-term, and the demand for cobalt will be strong in the short and long term. The rising momentum of the cobalt market is huge. It is expected that the cobalt market will have huge room for growth in the future.

Related listed companies: Huayou Cobalt (603799), Hanrui Cobalt (300618), Luoyang Molybdenum (603993).

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