Cobalt Market Update
The main driver in the cobalt market is the EV industry, as the metal is essential in batteries. But the coronavirus has hit the space hard, with many changing forecasts since the start of the year.
Wood Mackenzie was previously expecting EV sales growth of 20 percent year-on-year in 2020, but the firm is now looking at a contraction of up to 40 percent, Gavin Montgomery, research director, battery raw materials, told the Investing News Network (INN).
“We had projected the cobalt market to be relatively balanced this year as the excess stocks that characterized 2019 started to ease off, plus we have Glencore’s (LSE:GLEN) Mutanda mine offline this year. Now we see the market contending oversupply again as all end-use sectors are impacted.”
Many of the essential ingredients for automakers, such as copper, steel and aluminum, are hitting or approaching record highs this year as the lagging supply can’t keep up with stimulus-driven demand. The Bloomberg Commodity Spot Index jumped to its highest since 2011, with metals up 21% so far this year.
Should the current rally morph into a supercycle, rising car prices could forebode inflation across the board. Analysts at JPMorgan Chase & Co. estimate the price of an auto’s raw materials have climbed 83% in the year through March. Those pieces typically make up about 10% of the cost of building a vehicle, meaning the price tag for a $40,000 car would have to increase 8.3% to offset the rally, analysts for the bank wrote.
Cars keep getting pricier, and the commodity boom makes it worse
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Vehicles for sale at a Ford Motor Co. dealership in Colma, Calif.
Cars are back in vogue courtesy of the pandemic. They re also getting more expensive, thanks in part to surging commodity prices.
Many of the essential ingredients for automakers, such as copper, steel and aluminum, are hitting or approaching record highs this year as the lagging supply can t keep up with stimulus-driven demand. The Bloomberg Commodity Spot Index jumped to its highest since 2011, with metals up 21% so far this year.
Should the current rally morph into a supercycle, rising car prices could forebode inflation across the board. Analysts at JPMorgan Chase & Co. estimate the price of an auto s raw materials have climbed 83% in the year through March. Those pieces typically make up about 10% of the cost of building a vehicle, meaning the price tag for a $40,000 car would have to increase 8.3% to offset the rally, analysts for the
The content below was translated by Tencent automatically for reference.
Tesla Model3 s announcement of the price increase quickly went viral on domestic social media this weekend. The price of the domestic Model 3 standard battery life upgrade will rise by 1000 yuan, reflecting the actual situation of cost fluctuations, Tesla announced on May 8. In the Chinese market, this is the first time that Tesla has raised the price of the Model 3 model this year, and it is also the second time that the price of the domestic Tesla model has increased this year.
Tesla s announcement of the price increase in China comes a day after Tesla in the United States also announced a price increase, and the prices of the standard life upgrade version of Model 3, the long-range flight version and the long-term flight version of Model Y will all be increased by US $500 (about RMB 3215). According to statistics, this is the fourth time in the past two months that Tesla has raised the price of the standard
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Cars are back in vogue courtesy of the pandemic. They’re also getting more expensive, thanks in part to surging commodity prices.
Many of the essential ingredients for automakers, such as copper, steel and aluminum, are hitting or approaching record highs this year as the lagging supply can’t keep up with stimulus-driven demand. The Bloomberg Commodity Spot Index jumped to its highest since 2011, with metals up 21 per cent so far this year.
Should the current rally morph into a supercycle, rising car prices could forebode inflation across the board. Analysts at JPMorgan Chase & Co. estimate the price of an auto’s raw materials have climbed 83 per cent in the year through March. Those pieces typically make up about 10 per cent of the cost of building a vehicle, meaning the price tag for a $40,000 car would have to increase 8.3 per cent to offset the rally, analysts for the bank wrote.