China April Cobalt Sulphate Output and Forecast for May

SHANGHAI, May 10 (SMM) - China’s cobalt sulphate output stood at 6,232 mt in cobalt content in April, down 17% MoM and 4% YoY. The cumulative output stood at 27,350 mt in cobalt content in January-April, up 11% YoY.

In April, the domestic demand for precursors did not show a significant recovery, while overseas demand weakened slightly. The operating rates of precursor factories remained low. Precursor factories delayed pick-up of long-term orders and barely purchased in the spot market. The overall inventory of cobalt salt factories was relatively high. Cobalt salt factories preferred to take outsourcing orders from their rivals instead of producing for their own. As there was a certain price difference between cobalt sulphate, Co3O4 and refined cobalt, some cobalt salt factories switched their production lines to produce other cobalt products.

Cobalt salt factories will still focus on destocking in May as downstream demand has not yet improved. SMM estimates that China’s cobalt sulphate output will be 5,345 mt in metal content in May, down 14% MoM, but up 15% YoY.