With no change in market supply and demand, can the price of recycled waste materials increase?

　　Recently, affected by the fluctuating market sentiment and futures prices of lithium carbonate in the lithium battery market, the lithium battery waste material market has also been affected, with market prices fluctuating along with the sentiment of lithium carbonate.

　　It is understood that some upstream battery electrode material traders have significantly raised their prices in the past two days.

　　However, tracing back to last week, the battery cell recycling market in some regions has become more active than before. Upstream traders with inventory are under great pressure, and the downward space of lithium carbonate has narrowed significantly compared to before. At this time, their mentality has been slightly adjusted, believing that the downward space of used battery prices has narrowed compared to before, making them more determined to suspend shipments. High-cost waste materials would result in losses if traded now, so they are waiting for the recovery of the recycling market and the restoration of demand, hoping for a price rebound before conducting transactions.

　　In March and April, affected by the decline in lithium carbonate prices and weak downstream market demand, some crushing and powdering companies faced heavy pressure, resulting in production stoppages and reductions.

　　Even if large crushing plants consume inventory in the early stage, there may be inquiries for inventory replenishment in April when inventory reaches a low point.

　　In the face of the uncertainty of future lithium carbonate price fluctuations, the production cycle, raw material costs, and the acceptance of downstream hydrometallurgical enterprises need to be considered for battery cells and electrode materials. The lithium carbonate price will not be viewed too optimistically. When the waste material price is far higher than expected, the purchasing willingness decreases, and no transaction agreement is reached with the upstream, resulting in a failure to achieve large-scale transactions of high-priced battery cells and electrode materials.

　　In the face of price fluctuations in the lithium battery market, the attitude of recycling hydrometallurgical plants will be clearer.

　　Because their downstream customers are precursor or cathode material plants, hydrometallurgical plants clearly realize that downstream orders have not shown significant recovery, and demand is insufficient to support price increases.

　　Even if lithium carbonate prices rise, it is a short-term market speculation.

　　Waste materials are still in urgent demand. Transactions will only occur when the price meets expectations. If the upstream price is too high, then continue to wait and see. The downstream demand for nickel, cobalt, and lithium salts is poor, and the risk of inventory buildup is high at this time.

　　Looking at all aspects of the recycling market, there is now a clear disconnect in price expectations.

　　It is believed that this round of price fluctuations is not due to the recovery of downstream demand. Even if the upstream intends to support prices and rebound, it is difficult for prices to be transmitted to the downstream, and the market's wait-and-see attitude towards waste materials remains strong, making the probability of a significant price rebound low.

　　At this time, we should rationally view this round of price fluctuations, pay attention to the market supply and demand situation, reasonably arrange production plans, and reduce risks.