SMM Analysis Of China Cobalt Sulphate Production In May And Forecast For June

In May, China's cobalt sulphate production was 6,143 mt in metal content, up 20% MoM, down 2% YoY. The main reasons for the increase in production are: first, the release of new capacity from a certain smelter; second, Co3O4 producers increased in-house production of cobalt sulphate due to difficulties in sourcing externally.

For June, although the demand from the precursor sector is weak, there is still demand in other sectors. Some producers plan to postpone their production cuts to July when the arrival of the peak electricity consumption season could potentially lead to power shortages. The total production in June is expected to at approximately 6,119 mt in metal content, with little MoM fluctuation, down 16% YoY.