In the short term, however, China's reopening is adding pessimism to the already weak outlook on PEV sales in the March 2023 quarter as the national-level subsidy ends. The much-awaited move brings positivity to the global economy, and to an auto sector that is increasingly being affected by affordability challenges. We nevertheless forecast lithium and cobalt prices to be pressured over the next few months due to weakening PEV sales and rising COVID-19 infections.Ĭhina dropped its zero-COVID policy at the start of December.We expect China's exit from its zero-COVID policy to benefit the global supply chain and medium- to long-term growth outlooks, despite near-term disruptions caused by new waves of cases, post-reopening.China's cobalt metal price decline accelerated in December on a disproportionate drop in nickel-manganese-cobalt, or NMC, battery production and more cautious inventory management.16, weakening the cost support for lithium chemical prices. The spodumene auction settlement price fell 3.2% Dec.The monthly lithium carbonate CIF Asia price increase slowed to 2.5% month over month in November to $62,500 per tonne, from the staggering 22.0% spike in October.In Europe, passenger PEV sales are benefiting from a bounce-back in the overall car market in November and a jump in the penetration rate before year-end.December provides a narrow window for catch-up sales before the national PEV subsidy ends, although sales are currently challenged by surging COVID-19 cases. China's passenger plug-in electric vehicle, or PEV, sales fell below expectations in November as COVID-19 lockdowns affected more of the key auto-buying regions than in October. ![]() ![]() S&P Global Commodity Insights discusses the lithium and cobalt markets within the broader macroeconomic environment and provides five-year supply, demand and price forecasts.
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