Overseas cobalt prices were relatively stable during the Chinese New Year (CNY) holiday, and there were few cobalt salt transactions heard in the market. And the prices remained unchanged from the pre-CNY holiday level.

The output of cobalt sulphate in January will be about 5,900 mt in metal content, and the output of cobalt chloride will stand at 4,400 mt in metal content.

China’s copper cathode output stood at 789,400 mt in October, down 1.7% month on month and 3.9% year on year.

The output of copper cathode in September stood at 802,900 mt in September, down 2% on the month and up 0.4% on the year.

In the case of the COVID-19 outbreak last year, the global sales of new energy vehicles can still grow against the trend.

China has recently released the winter heating season policies for 2020/21, and while the initial view is that supply disruption may be less this year, there are still question marks over the impacts on demand.

The outlook for the China’s cobalt-lithium new energy industry in 2020 is full of uncertainties with the hampering impact of COVID-19 on global trade. On the demand side, cobalt-lithium new energy (the key downstream application segment), the new energy vehicles (NEVs) and the 3C consumer markets are affected by the global widespread of the coronavirus pandemic, with sharp declines in overseas orders. On the supply side, we saw the suspension of production across mine smelters and port closures as the demand and supply fundamentals has changed tremendously due to COVID-19.

Prices of cobalt salts held stable last week as concerns about raw materials supply tightness waned. Inquiries increased in the lithium market but actual trades were light. SMM learned that demand for cathode materials shows no signs of picking up in June. Limited demand for raw materials may see cobalt prices retreating after seaborne cobalt raw materials arrive at ports. 

Guangxi Tianyuan New Energy Material has put its 10,000 mt/year lithium carbonate production line into operation, SMM learned.

SMM expects cobalt prices to stay at low levels before the holiday, with little chance of recovery for lithium carbonate