Resumen de What’s the impact of China’s 2019 EV subsidy policy?

Industrial Minerals

• Fastmarkets’ assessment of the Chinese cobalt sulfate price was 45,000-47,000 yuan per tonne on March 29 - its lowest point for two and a half years, market participants acknowledged. [...]the market consensus is that the new China EV subsidy policy is unlikely to bring further large downward pressure to the cobalt sulfate price, while participants also pointed out that the current spot market level is already below certain refineries’ production costs. [...]any demand for cobalt from those plants will be lost. Since no cobalt is needed to produce LFP batteries, one long-term scenario is that even with the anticipated growth in EV production in China in the next few years, the market demand for cobalt may not grow at a similar rate as achieved so far.