SHANGHAI, Aug 14 (SMM) –
Domestic cobalt sulphate output stood at 8,391 mt in metal content in July, up 12% MoM and a growth of 33% YoY. Cobalt sulphate output totalled 49,683 mt in metal content from January to July, up 18% YoY.
On the supply side, bolstered by the news of central government purchasing refined cobalt as national reserves, cobalt prices trended higher in mid-to-early July, largely widening the gap to cobalt salts, thereby pushing up offers for cobalt salts. In addition, profits of cobalt sulphate were good. Under such circumstance, the operating rate of cobalt salt makers moved up. On the demand side, a rapid rise in cobalt prices fuelled higher buying appetites from downstream buyers, boosting enthusiasm for inquiries. Therefore, cobalt was overbought to a certain extent. In late July, with cobalt price retracing down, and social inventory of cobalt salt was high. However, the operating rate of cobalt salt companies remained high due to orders received earlier. Inventory of cobalt salt factories increased since mid-to-late July.
Ternary cathode precursor makers may keep production stable in August, except for a certain increase in the leading precursor manufacturers. The overall ternary cathode precursor makers will still consume the previous inventory, and demand will be weak. On the supply side, weak order intakes, cobalt price erosions and profit dips will lead some smelters to lower scheduled production. China’s cobalt sulphate output may be 8,212 mt in metal content in August, down 2% MoM but up 28% year on year.
