SMM analysis on China June cobalt sulphate output and July forecast

In June, China's cobalt sulphate production was 5,646 mt in metal content, down 8% MoM and 25% YoY. The main reasons for the production decrease in June were the significant decline in downstream demand for ternary cathode precursors, leading to reduced scheduled production downstream and weakened demand for cobalt sulphate. Additionally, due to high market inventory and continuous decline in spot prices, the losses of cobalt sulphate smelters intensified, resulting in significant production cuts.

In July, although downstream scheduled production is expected to increase, the demand will be more concentrated on high-nickel materials, limiting the recovery of cobalt demand. Therefore, the expected production in July is about 5,691 mt in metal content, with little MoM fluctuation and a 32% YoY decrease.