China battery scrap prices hold steady during CNY holiday, outlook tied to supply

During the Chinese New Year holiday period, the lithium-ion battery recycling market experienced weak supply and demand, with prices remaining stable and a lack of market transactions. Most processing plants suspended operations during the holiday, while hydrometallurgical plants generally maintained operations. Production is expected to resume gradually after February 24th. A small number of market players continued production during the festival, primarily to fulfill tolling processing orders. In terms of market transactions, trading had largely ceased in the week leading up to the holiday, as downstream manufacturers had completed their stockpiling for either post-holiday production or for maintaining production line operations during the festival. Post-holiday market transactions have yet to pick up, with most participants adopting a wait-and-see approach regarding price trends. It is anticipated that transactions will gradually resume in the week following the holiday.

Market: During the Chinese New Year holiday period, the lithium-ion battery recycling market experienced weak supply and demand, with prices remaining stable and a lack of market transactions. Most processing plants suspended operations during the holiday, while hydrometallurgical plants generally maintained operations. Production is expected to resume gradually after February 24th. A small number of market players continued production during the festival, primarily to fulfill tolling processing orders. In terms of market transactions, trading had largely ceased in the week leading up to the holiday, as downstream manufacturers had completed their stockpiling for either post-holiday production or for maintaining production line operations during the festival. Post-holiday market transactions have yet to pick up, with most participants adopting a wait-and-see approach regarding price trends. It is anticipated that transactions will gradually resume in the week following the holiday.

Price Trends: During the CNY holiday, prices for lithium battery scrap remained stable due to a lack of influencing factors. The quoted discount coefficient for ternary cathode scrap metal salts ranged from 78% to 80.5%, while battery powder quotes were between 75% and 76.5%. For lithium iron phosphate (LFP) cathode scrap, the price was quoted between Yuan 5,800-6,000 per lithium point, and LFP battery powder quotes ranged from Yuan 5,600-5,800 per lithium point. Lithium point quotes for LFP scrap experienced a slight uptick due to holders' bullish sentiment. However, significant price fluctuations are unlikely given the limited receiving capacity of downstream buyers.

Market Outlook: Although some traders continue to support prices firmly within the market, influencing the price direction of lithium battery scrap, current operations at hydrometallurgical plants are normal, and they have already completed their stockpiling needs through March, resulting in subdued demand within the market. As downstream manufacturers gradually resume production after February 24th, battery scrap prices are expected to see a slight increase. Overall, the price trend will be significantly influenced by the availability of scrap materials in the market.

Edited by Cassie Li, lixiangying@mysteel.com