SHANGHAI, July 2 (SMM) -- Price cuts from Jinchuan Group may trigger a new round of price decline, and prices may continue to fluctuate weakly.
Although most producers have already suffered from losses, large-scale producers in Jiangsu and Zhejiang provinces have worked at full capacities recently. As consumption hasn't improved recently, the increased inventories may weigh on prices down.
Prices of raw material continued to fall, and quotes to smelters have already fallen between USD 135,000-138,000/mt. Prices of other raw material for crude cobalt carbonate were at the same level of cobalt concentrate prices. Prices were on downward track and smelters made purchases cautiously.
Some cobalt salt producers extended their production line to produce refined cobalt, and supply of domestic refined cobalt is expected to grow. The poor demand from the Europe and the US market, coupled with the fact that exports to China is not appropriate at present due to unfavorable domestic/overseas cobalt price ratio, help weigh on overseas cobalt prices. In this context, overseas cobalt prices may continue to fall.
It is expected that traded prices of refined cobalt may move between RMB 300,000-330,000/mt; mainstream traded prices of cobalt chloride may move 70,000-71,000/mt; prices of tricobalt tetroxide will be temporarily stable between RMB 230-233/kg and traded prices of lithium cobalt will move in the RMB 235,000-245,000/mt.
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