SMM Data: China’s Co3O4 Output In August And Forecast For September

SHANGHAI, Sep 14 (SMM) – In August, the production of Co3O4 in China was 6,898 mt, representing a 5% decrease MoM and a 40% increase YoY.
From January to August, the cumulative production of Co3O4 in China reached 48,115 mt, with a decrease of 2% YoY.
On the raw material side, the prices of cobalt intermediates and cobalt salts continued to decline in August, leading to weaker cost support and continuously lower transaction prices for Co3O4. On the demand side, LCO companies showed a strong cautious sentiment due to the downward trend in lithium cobalt prices, focusing on purchasing only essential needs. On the supply side, due to poor downstream orders and high inventories in some companies, there was an overall reduction in production for Co3O4 companies.
It is expected that in September, on the cost side, the price of cobalt salts will rebound in early September, providing stronger cost support for Co3O4. On the demand side, as new devices are gradually released at the end of August and in September, it will drive an increase in production for LCO companies, leading to higher demand for specific types of Co3O4. In addition, there may be some speculative buying in the downstream market due to the slight rebound in Co3O4. On the supply side, leading Co3O4 companies will increase production due to the incremental orders from new device releases. However, some companies may see a temporary reduction in orders for specific product models, resulting in stable but slightly increased overall Co3O4 production. The expected production for September is 6,918 mt, representing a 0% increase MoM and a 6% increase YoY.