Cobalt prices fluctuated and stabilized this week

This week, the domestic cobalt price fluctuated and stabilized, and the cobalt market was adjusted strongly. As of October 26, the cobalt price was 400,800 yuan/ton, a slight increase of 0.15% from the 400,200 yuan/ton cobalt price last weekend (October 17). Cobalt prices have risen slightly this week, and the overall cobalt market has stabilized.

Mobile phone shipments both fell in the same month-on-month period

According to data from the China Academy of Information and Communications Technology released in September 2021, the domestic mobile phone market operation analysis report showed that the domestic market mobile phone shipments were 21.44 million units in September, a year-on-year decrease of 8.1%. The month-on-month domestic market mobile phone shipments were 24.306 million units in September. Mobile phone shipments in the domestic market decreased by 11.8% month-on-month; in the third quarter of 2021, the total mobile phone shipments in the domestic market totaled 7442.2 units, a year-on-year increase of 2.6%. From January to September 2021, the total mobile phone shipments in the domestic market totaled 249 million Department, an increase of 10.2% year-on-year. Mobile phone sales declined for two consecutive months at the same and month-on-month basis. Although mobile phone shipments continued to increase year-on-year from January to September, the mobile phone market is showing signs of fatigue in the future. The decline in mobile phone sales is negative for the cobalt market.

Market summary

The recent performance of the new energy vehicle market has remained strong, but the proportion of ternary batteries has declined, indicating that the cobalt market has not borrowed from new energy vehicles’ dynamic demand for cobalt. Both the month-on-month decline, the demand for cobalt on the mobile phone side has declined significantly. Although the international cobalt price has continued to increase to stimulate the domestic cobalt price to rise, the weak performance on the demand side has made the cobalt price rise insufficient, but in the long run, the demand for cobalt is rising. It is imperative. The long-term rise in the cobalt market is sufficient. It is expected that the cobalt price will fluctuate slightly in the future.

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

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