[Non-ferrous] The price increase was realized as scheduled, entering a period of high tracking

Cycle research: Maintaining the lithium cobalt industry's holdings growth rating. Lithium sector: Fundamentally, short-term lithium supply and demand continue to be tight, lithium prices maintain a high trend, and the concentrate side is more certain. 1) Futures side: The Wuxi-pan lithium carbonate 2208 contract rose 0.6% last week to 475,500 yuan/ton; 2) Lithium concentrate: Last week, the price of lithium concentrate from the Asian Metal Network was 4,720 US dollars/ton, the same as last week. We don't think there will be an increase in lithium supply within a year (more affecting long-term supply expectations), and we expect lithium spot prices to be strong in 2022. Increased holdings: China Mining Resources, Tianqi Lithium, Rongjie Co., Ltd., Yongxing Materials, Ganfeng Lithium, Shengxin Lithium Energy. Beneficiaries: Jiangte Electric, Salt Lake Co., Ltd., Tibet Mining, Tianhua Ultra Clean, Keda Manufacturing, Tibet Everest, Chuanneng Power, Zanger Holdings. Cobalt sector: Domestic raw material prices have continued to decline and have stabilized recently, and the price adjustment logic of cobalt salt smelting enterprises has shifted to demand domination. Cobalt companies have expanded their new downstream manufacturing industry for multi-directional electricity, forming an integrated cost advantage of cobalt-nickel-precurant-ternary elements and strengthening competition barriers. Beneficiaries: Huayou Cobalt, Hanrui Cobalt, Luoyang Molybdenum, Grimme.

At the beginning of August, enthusiasm for quotations increased, and lithium prices slowly rose: China's lithium carbonate price rose slightly last week, and the overall price of lithium hydroxide overseas was strong. Battery grade lithium carbonate 47.5-48.5 (+50,000 yuan/ton three weeks ago), industrial grade lithium carbonate 46-465,000 yuan/ton+ (+ 50,000 yuan/ton). The latest industrial grade lithium carbonate upper price limit: Some manufacturers traded sporadically at 470,000 yuan/t. Battery-grade lithium hydroxide is 47-472,000 yuan/ton, which is less stable than the obvious increase in the price of lithium carbonate. The bulk order delivery price of lithium hydroxide in Japan and South Korea is 72-78 US dollars/kg, the same as the previous week. The inversion of domestic and foreign price spreads still exists. From the beginning of June until now, the price of lithium has fluctuated at a high level for about a month. It achieved a slow and slight increase in July. In particular, it has already started clearly in about two weeks, but the increase is relatively slow. The main reason: Q2 to the beginning of Q3 of each calendar year was a period where transactions were relatively light, demand was stable, and supply was released. Midstream manufacturers' inventories are still safe to a certain extent. The procurement mentality of the middle and lower reaches is more conservative and cautious. Last week, I felt that the inquiry for quotations was more enthusiastic than in July. Purchasing enthusiasm increased, and I accepted the slow rise in prices. According to SMM data, the price of battery-grade lithium carbonate last week was 466-477,000 yuan/ton, an average price increase of 0.19% over the previous week. The price of battery-grade lithium hydroxide was 46-475,000 yuan/ton, the same average price as the previous week.

There is a lot of accumulation, the pace of recovery in cobalt demand is slow, and the price of cobalt continues to pull back: according to SMM data, the price of cobalt last week was 31-320,000 yuan/ton, down 5.06% from the previous week. The supply of cobalt electricity is expected to increase, and demand is still weak. Coupled with the recent decline in MB prices, leading manufacturers have lowered their ex-factory prices. The price of cobalt intermediates continues to decline. Domestic demand has been poor in the past two months, forcing prices in the international raw material market to drop. Coupled with the recent overseas summer vacation, demand in the overseas cobalt metal market is weak, and the price of cobalt intermediates has declined accordingly.

The price of lithium iron phosphate remained stable, and the price of ternary materials declined slightly: according to SMM data, the price of lithium iron phosphate last week was 150,000 to 159,000 yuan/ton, the average price was the same as the previous week. The price of the 622 ternary material was 3445-353,500 yuan/ton, down 0.23% from the previous week's average price.

Risk warning: The growth rate of new energy vehicles falls short of expectations.