Cobalt prices fluctuated and fell in November

According to the cobalt market analysis system of the Business Society, as of November 10th, the cobalt price was 261300 yuan/ton, a decrease of 2.10% compared to the cobalt price of 266900 yuan/ton on November 1st. The cobalt price in October was stimulated by the news of cobalt storage, which led to a significant increase in cobalt prices. However, the good news of cobalt storage in late October was not there. In addition, the growth of new energy vehicle consumption slowed down, resulting in poor demand in the cobalt market and a slight decline in cobalt prices. In November, cobalt prices fluctuated and fell.

Domestic sales of new energy vehicles increased in October

According to data from the China Association of Automobile Manufacturers, in October, the production and sales of new energy vehicles completed 989000 and 956000 units respectively, with year-on-year growth of 29.2% and 33.5%, and a market share of 33.5%. From January to October, the production and sales of new energy vehicles completed 7.352 million and 7.28 million units respectively, with year-on-year growth of 33.9% and 37.8%, and a market share of 30.4%. The production and sales of new energy vehicles have increased year-on-year, but the growth rate has slowed down. The demand for cobalt in the market has increased, but the growth rate may not meet expectations.

VR consumption in the domestic market was sluggish in the third quarter

According to market research firm CINNO Research, the domestic VR consumer market was sluggish in the third quarter of 2023, with a total sales volume of 100000 units, a year-on-year decrease of 28.9% and a month on month decrease of 35.5%. The fourth quarter will enter the peak season of e-commerce shopping such as the “Double Eleven”, but the performance of the VR market is still not optimistic. VR market consumption is sluggish, 3C electronic product consumption is poor, cobalt market demand is poor, and the pressure of cobalt price decline is increasing.

Overview and outlook

According to Bai Jiaxin, a data analyst at Business Society, the stimulus from the national collection and storage news is no longer there, and the support from the rise in cobalt prices is difficult to sustain. The performance of the new energy vehicle market is less than expected, the VR consumer market is sluggish, the consumption of 3C electronic products market is declining, and the demand for cobalt in the market is poor. In the future, demand is poor, and the downward pressure on cobalt prices is increasing. Cobalt prices have slightly declined, but the cost support for metal cobalt still exists, and cobalt prices are difficult to fall below 250000 yuan/ton. It is expected that cobalt prices will fluctuate and consolidate in the future.