Polaris Energy Storage News: 2015 total global cobalt supply of...

Polaris Energy Storage News: 2015 total global cobalt supply of raw materials is about 98 000 tons of metal, compared to consumption of about 92,000 tons of metal, only 6000 tons of metal excess, the excess number of 2014 about 1000 tons of metal, surplus dropped 4%, the gap between supply and demand has shown a narrowing trend.
　　From our situation, Chinese cobalt production enterprises basically completed in early 2015 to the inventory of the overall goal, raw materials and finished goods inventory at a relatively safe level. With the development of the downstream high-temperature alloys, magnetic materials, and battery industry, 2011-2015, domestic real consumption has remained steady growth trend. We expect our cobalt demand in 2016 will grow by 10% in increments of about 6,000 tons, 16 to 17 or early in the second half a new situation of supply shortage will occur.
　　
　　2011--2015 cobalt domestic market supply and demand balance
　　Demand level: cobalt consumption in the battery field growing
　　Cobalt is an element and lithium cobalt oxide cathode material must be used three yuan in 2015, China's actual consumption of cobalt is 4.45 million tons, an increase of over 29%, with lower battery consumption accounted for 80%. Lithium supply structure will change, the production of lithium cobalt oxide still maintain growth momentum, but the share of declining international mainstream manufacturers of lithium cobalt gradually abandon more traditional materials - cobalt oxide, lithium turn three yuan materials and other cathode material. But the total cobalt demand for batteries in the area will continue to increase, we can expect growth in this part of the demand supply will bring some pressure, it is possible to break the current relative balance between supply and demand pattern.
　　
　　2011 - 2015 lithium supply structure change
　　Supply side: the supply of cobalt and copper-nickel concentrate is associated, in 2016 the global production capacity of cobalt-free
　　According to Antaike forecast 2015 overseas manufacturers of metal cobalt production is about 27,900 tons, down 7.14%, while the metal cobalt production decreasing trend will still continue. In addition ENRC's Chambishi cobalt project production and Glencore subsidiary Katanga will remain the 2016 annual maintenance shutdown status, Brazil Votorantim Metais has also been discontinued. Visible, no new capacity this year, the world's cobalt production will be reduced by about 26,000 tons. In the case of weak commodity prices, copper and nickel miner in the short term is difficult to have enough power expansion.
　　Company level: cobalt price at the bottom of history, industry losses
　　2015 MB cobalt averaged $ 12.51 / lb, compared with the previous year decrease of 8.8%. Valuations continue downward trend this year, a quarter MB cobalt (Superior) averaged US $ 10.84 / lb, cobalt MB (lower) $ 10.72 / lb. Cobalt price downturn environment, industry losses, most Hurray Cobalt 15 years of his maternal net loss of 246 million; Grammy performance Express showed net profit fell 23.56%.
　　In summary, we believe that in the case of cobalt supply and demand fundamentals continued to improve in the short term is expected to compensatory growth of the stock market out of the wave. The long-term benefit from the constantly emerging new downstream demand, shortage of supply will gradually highlight. Or will become the next "Lithium."

http://news.smm.cn/r/2016-05-12/3802583.html