The shortage of lithium carbonate has stabilized and the price of lithium carbonate has recovered. Since January, due to the maintenance of lithium salt plant, there has been a huge gap in lithium salt in China. With the completion of maintenance, the seasonal production capacity in Qinghai recovered, the supply of lithium salt in China rebounded significantly, and the shortage of lithium carbonate in China was alleviated. At present, the upstream and downstream are still in a game state. The downstream is still purchasing on demand, and the wait-and-see mood is strong. The upstream manufacturers show signs of loosening and dumping. Affected by this, the futures price of lithium carbonate has declined, but it has little impact on the spot market.
The Ministry of industry and information technology suggests strengthening the connection between the upstream and downstream of lithium salt. During the week, the Ministry of industry and information technology and the price department of the national development and Reform Commission organized a symposium on the lithium industry and the price rise of upstream materials of power batteries. In view of the recent sharp rise in the prices of lithium resources and lithium salt products, the meeting had a full exchange of views on the market price formation mechanism of lithium salt products, production and consumption, the impact on the power battery industry, policies and measures to ensure supply and stabilize prices, etc. The meeting required upstream and downstream enterprises in the industrial chain to strengthen the connection between supply and demand, work together to form a long-term and stable strategic cooperative relationship, and jointly guide the rational return of lithium salt price.
China’s copper supply and demand are weak, and Russia’s copper is on the rise again. According to SMM statistics, China’s copper social inventory decreased by 43500 tons compared with last Friday, and the speed of stock removal was significantly accelerated. The epidemic situation in China has intensified, the delivery of smelters has been affected, the downstream wire and cable factories and enamelled wires have been forced to reduce production and shut down, and the operating rate of refined copper rods has decreased by 2.9pct month on month compared with last week. The Fed raised interest rates by 25 basis points this week, lower than market expectations. The outer copper price strengthened. China’s copper import loss expanded to 1000 yuan / ton. People familiar with the matter said that LME’s copper Committee recommended banning the supply of new Russian metals, that is, new Russian copper should not be allowed to enter its warehouse. Once this move is implemented, it will trigger another market impact.
Demand remains strong, and the epidemic affects aluminum shipments. China’s demand maintained a good growth: according to SMM statistics, the operating rate of China’s leading aluminum processing enterprises increased by 0.2pct month on month, and the downstream goods were actively prepared. China’s electrolytic aluminum social inventory was 53000 tons and aluminum rod inventory was 35000 tons compared with last Thursday. In terms of supply, China’s electrolytic aluminum production capacity continues to improve, but the epidemic has affected aluminum transportation in some areas.
Focus on: Sinomine Resource Group Co.Ltd(002738) , Lizhong Sitong Light Alloys Group Co.Ltd(300428) , Tianqi Lithium Corporation(002466) , Chifeng Jilong Gold Mining Co.Ltd(600988) .
Risk tip: the macro environment changes, the demand is lower than expected, and the policy uncertainty increases.
