Non-ferrous metal recycling industry product prices rise, industry companies overall good performance

At present, there are more than a dozen companies engaged in non-ferrous metal recycling. In terms of performance, it benefited from the supply-side reforms, the recovery of non-ferrous prices in 2017, the price of non-ferrous metal recovery products rose, and the performance of industry companies was overall good.

General growth in performance

In 2017, due to supply-side reforms, the industry's production capacity contracted, and the prices of various metals such as lead and copper recovered. The relevant companies are generally in sufficient hand orders, product prices rose, the overall profitability of the industry recovered significantly.

According to the annual report of China Reinvestment, the company's operating income in 2017 was 2.338 billion yuan, an increase of 60 yuan year-on-year; The net profit attributed to the parent company owner was 218 million yuan, an increase of 55 % year-on-year. Performance growth is mainly due to the recovery in the market and the expansion of the company's production capacity.

Yuguang Gold and Lead is expected to achieve a net profit of 270 million yuan to 3.1 billion yuan in 2017, a year-on-year increase of 53%-76%. For the main reason for the pre-increased performance, the company said that during the reporting period, the price of lead and copper of the company's main products increased compared with the same period of last year, and the company increased the output of major products through technological innovation and transformation. The sales volume and price increase made the performance increase.

Yiqiu Resources ushered in the outbreak of performance in 2017. The company expects that the accumulated net profit for the year will be 24.067 million yuan, and the net profit in 2016 will be 25.8485 million yuan. The strong growth in 2017 was mainly due to the company's vertical effect upstream and downstream and the recovery of non-ferrous metals.

At the same time, the recovery of the industry led to the upturn of the upstream equipment industry. Huahong estimates that net profit in 2017 will be 110 million to 130 million yuan, a year-on-year increase of 74.53 to 106.26. Huahong technology said that the renewable resources processing equipment industry showed obvious signs of warming, the company in hand orders sufficient.

Battery recycling into hot spots

It is understood that the recycling value of power cells mainly lies in cobalt, nickel, lithium and other metals. Among them, the metal cobalt price of one of the power cell positive electrode materials is in a strong upward channel. At present, the average price of cobalt market is about 650,000 yuan per ton, which is close to 20 yuan from about 540,000 yuan per ton at the beginning of the year; Prices more than doubled from 290,000 yuan per ton in early February 2017. In addition, nickel, lithium and other metal content in ternary batteries are higher, and the recycling value is higher. Although lithium iron phosphate batteries do not contain rare metals such as cobalt and nickel, lithium content reaches 1.1 <UNK>. At present, the price of battery-grade lithium carbonate continues to rise, and its recycling value is relatively high.

Combining the forecast data of various institutions, China will accumulate 13,000-200 ,000 tons of new energy vehicle power batteries for scrap from 2018 to 2020. By 2025, this figure is expected to reach 350,000 tons.

The market that is closely related to scrap quantity will become the breaking point of the big environmental protection industry chain. We expect that in 2018 alone, China's recycling market for used power cells will expand to 5.2 billion yuan, reaching nearly 7 billion yuan by 2020. With the improvement of recycling technology and the prosperity of the industrial market, the overall market size will reach between 15 and 20 billion yuan by 2022.

Since 2016, policies and regulations on used and end-of-life power batteries have been promulgated, ranging from the Technical Policy on the Recycling of Electric Vehicle Power Batteries to the Guidelines on the Recycling and Dismantling of Vehicle Power Batteries. Then, in 2018, the Ministry of Industry and Information Technology, jointly with six ministries and commissions, issued the Interim Measures for the Recovery and Utilization Management of New Energy Power Battery and the Notice on Organizing Pilot Work for the Recovery and Utilization of New Energy Vehicle Power Battery, which raised the recycling of power batteries to the level of national will.

The scale of the market has rapidly expanded, and national policies have continued to be positive. A number of battery production-related companies have also actively deployed in the power battery recovery field to seek first-mover advantages.

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