SHANGHAI, Jul 23 (SMM) – China's cobalt sulphate production in June dipped 29.5% from May to stand at 1,461 mt in metal content, SMM data showed.
Supply fell sharply from smelters in Zhejiang, Jiangsu, and Guangdong provinces, who were keen to deplete inventories of finished products amid lacklustre downstream demand. The environmental impact also accounted for the month-on-month decline.
Production in July is likely to rebound to around 1,800 mt, in metal content, as some suppliers resumed operation in mid-July from environmental suspensions. However, they are likely to keep relatively low operating rates this month as the market declines.
SMM assessed domestic cobalt sulphate at 106,000 yuan/mt as of Monday July 23. This tumbled from a three-year high of 142,000 yuan/mt on April 16.