Zhi Tong Cai Jing·2025-10-26 22:53Core Viewpoint - The report from Guotai Junan maintains an "overweight" rating for the lithium and cobalt industry, indicating a strong demand that supports lithium prices, while cobalt prices are expected to show upward momentum until the end of the year [1][2]. Lithium Sector - The lithium market is experiencing strong demand, leading to price increases. The weekly price for battery-grade lithium carbonate rose by 2.79% to a range of 74,500-76,330 CNY/ton [1][3]. - The lithium concentrate price reached 881 USD/ton, an increase of 35 USD/ton, reflecting strong overseas pricing sentiment and robust downstream purchasing intentions [2]. - The production of lithium salts remains high, with a weekly production increase of 2.43% and a decrease in inventory by 1.73%, indicating a significant improvement in supply-demand dynamics [3]. Cobalt Sector - Cobalt prices are experiencing fluctuations due to weak downstream demand and inventory pressures. The average price for electrolytic cobalt increased by 6.96% to a range of 400,000-415,000 CNY/ton [4]. - Cobalt salt prices are stabilizing as downstream demand focuses on inventory digestion and essential replenishment, with limited acceptance of current prices [4]. - Cobalt companies are extending their operations towards new energy sectors, creating a cost advantage through integrated production processes [2]. Market Dynamics - The demand for new energy vehicles continues to grow, with retail sales of 632,000 units in October, a year-on-year increase of 5% and a penetration rate of 56.1% [3]. - The supply side is seeing new production lines coming online, but the pressure from increased production capacity remains a concern for future price stability [3].