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Weaker Tricobalt Tetraoxide Demand MoM, Sep Operating Rate Down 6%

iconOct 13, 2010 11:56
Source:SMM

SHANGHAI, Oct 12(SMM)--The demand of tricobalt tetraoxide in September decreased significantly compared to in August as the operating rate declined by 6% in September MoM.

SMM surveyed 9 tricobalt tetraoxide manufacturers including Jiangsu Cobalt Metal Co.,Ltd(KLK), Jinchuan Group, Huayou Cobalt Company, Ningbo COBOTO Cobalt&Nickel Co., Ltd., and Galico Cobalt&Nickel Material Co.,Ltd on the operating rate of tricobalt tetraoxide in September this week, 4 of which are with a capacity of or above 250 mt per month.

The total capacity of the above 9 enterprises is approximately 2,035 mt per month, and the output of tricobalt tetraoxide totaled 1,770 mt in September. The operating rate was 87%.

The operating rate declined by about 6% in September compared to in August, and the tricobalt tetraoxide output of the plants surveyed all declined to certain extent except for a few large-scale plants in full operation which had steady long-term orders.
According to tricobalt tetraoxide manufacturers, the demand of tricobalt tetraoxide in September was moderate, but still decreased significantly compared to in August. The demand of tricobalt tetraoxide in 2H of August was considerable as downstream buyers all purchased for reserve at low price. By contrast, downstream buying interest was low as tricobalt tetraoxide prices rose high gradually in September.

Most manufactures indicated that the demand of tricobalt tetraoxide in October was weak. According to the survey this week, most tricobalt tetraoxide producers received no full orders for October. Meanwhile, as far as SMM was concerned, the buying interest of downstream lithium cobalt oxide producers was low as they had sufficient inventories already. According to a cobalt oxide producer with capacity of 250 mt per month in North China, they had reserved an inventory for 2 or 3 months' production.

In addition, some tricobalt tetraoxide producers surveyed took an optimistic attitude toward the market. They indicated that downstream industries might purchase for inventories in large amounts in 4Q due to the traditional peak demand period of the Spring Festival. 

 

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