Once-hot battery metals set to slide, leading China group warns
Battery-metals prices are set to retreat from highs this year as surging supplies trigger gluts, a leading Chinese industry group warned.
Nickel prices are likely to drop in the second half as the global market may see a surplus on rising supply led by mines in Indonesia, according to Chen Xuesen, a spokesman for the China Nonferrous Metals Industry Association. Cobalt and lithium carbonate prices may also come off, Chen said, according to a statement on the group’s Wechat account. No estimates were given.
The expected retracement poses a near-term challenge for miners but will be welcomed by automakers, which have struggled in recent years to secure adequate supplies to meet increased demand. The association’s warning echoes a recent forecast from Goldman Sachs Group, which said it was bearish on battery metals including nickel, cobalt and lithium on “surging” production.
Following a 45% rally in 2022, nickel has already slumped 11% on the London Metal Exchange this year, making it the worst performer among the main six metals traded on the exchange. In China, lithium-carbonate prices have also been in retreat, plunging almost 25% from a record in November.
The association — which represents base-metal producers in Asia’s top economy — also warned of a possible surplus in aluminum battery-foil capacity as plants are added. For other metals such as copper and lead, the country is looking to draft policies to cap overall capacity and cut emissions, it said.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
