Pengxin to start trial operations at DRC cobalt hydroxide project in Oct

Cobalt raw material inventory (excluding refined cobalt) fell 5,100 mt in metal content in Q1.

The delivery ceremony of a high-pressure reactor, a core equipment of the hydro-metallurgy project at Huayue Nickel & Cobablt (Indonesia) of Huayou Cobalt & Morimatsu, was held at Morimatsu’s Nantong factory on November 20.  Since then, all four high-pressure reactors have been completed and delivered, marking that the Huayue project is about to enter a new stage of key equipment installation.

The short-term supply tightness of cobalt raw materials lifted cobalt salt prices last week, but limited trades and continued weakness in consumption may cap any rebound in the near-term prices. Prices of lithium carbonate will unlikely to extend declines given the raw materials costs and the trade prospects in Q2 this year. 

Full resumption of industrial production is expected across China on March 15, including producers in Hubei, the epicentre of the coronavirus, the latest SMM survey showed. Companies in Hubei are currently in preparation for the recovery. The operating rates of Chinese cobalt salts plants are expected to rise to normal levels in March, from only 30-40% in February. As of March 11, the rates stood at 50-60% for most cobalt salts mills.

Major downstream producers will continue to purchase feedstock to fulfil orders received pre-holiday, and this will support cobalt salts prices in the second half of February. 

The upward trend in overseas prices of refined cobalt will support bullish prospects for domestic prices

Increase in seaborne prices of cobalt boosted domestic cobalt prices last week

Lithium carbonate prices will see further downsides until the Chinese New Year holiday

Demand for LFP batteries remained strong, while consumption of ternary batteries failed to recover

China's imports of cobalt raw materials amounted to 4,800 mt in Apr, down 19.7% from Mar and down 13.7% from Apr 2018