SMM Data: China’s Cobalt Sulphate Output In August And Forecast For September

SHANGHAI, Sep 14 (SMM) – In August, the production of cobalt sulphate in China was 7,402 mt in metal content, representing a 12% decrease MoM and a 15% increase YoY.
From January to August, the cumulative production of cobalt sulphate in China reached 57,085 mt in metal content, with a growth of 18% YoY. On the supply side, the downward trend in cobalt sulphate prices in August led to higher intermediate costs for raw material cobalt salt producers. Additionally, downstream purchasing demand has been weak since mid to late July, resulting in an overall decline in operating rates. Some companies have converted their cobalt sulphate production lines to produce cobalt chloride due to the higher metal price premium of cobalt chloride compared to cobalt sulphate. Recycling companies have faced difficulties in recovering black powder and maintaining high coefficients, leading to a decrease in production. On the demand side, the production of ternary precursors increased in August. However, major integrated precursor manufacturers rely mostly on self-supplied cobalt salts, resulting in weaker external demand. The downstream market has shown cautious sentiment, focusing on digesting previous inventories.
It is estimated that in September, on the demand side, the overall production of ternary precursors will decrease, leading to a decline in cobalt demand. On the supply side, integrated enterprises will see a decrease in operating rates due to weakened downstream demand. Production from smelters will decline due to difficulties in black powder recovery and temporary mismatches in intermediate products. Additionally, the Hangzhou Asian Games may have an impact on cobalt salt production in the Zhejiang region. The expected production of cobalt sulphate in September is 7,015 mt in metal content, representing a 5% decrease MoM and a 3% increase YoY.