Production of cobalt sulphate to dip to 3,200 mt in Feb

Nickel sulphate prices rose slightly in July, mainly due to the tight supply and the increase in demand brought about by high nickel expectations, which pushed up prices of nickel sulphate.

China's cobalt sulphate output stood at 4,640 mt in metal content in May, a month-on-month increase of 5% and year-on-year increase of 69%.

n February, China's cobalt sulphate output was 3,615 mt in metal content, down 16.6% month-on-month but up 99.6% year-on-year.

China's cobalt sulpuate supply rose 5.1% from September, but declined 2.9% from a year ago, to 3,700 mt (Co content) in October, the latest SMM survey showed.

Primary lead output in China expanded significantly last month, as some large smelters recovered from maintenance and small and medium-sized smelters reopened after the spread of the coronavirus in the country came under control. China’s output of primary lead increased 11.94% from February to 240,000 mt in March, to produce a year-over-year decline of 7.03%. Output in the first three months of 2020 was 6.13% lower than the same period the year before.

SMM expects cobalt sulphate prices to extend declines to 46,000-47,000 yuan/mt by end-March as demand from motive power battery sector may remain subdued this month. Downstream consumption in April will likely improve markedly from March, which may see cobalt sulphate prices stemming declines in the second half of April.

Speculative purchases on news about production halt at Glencore boosted the market

The destocking inclination is likely to expand downside room in prices in the short term

Daily output of crude steel across China Iron and Steel Association member mills averaged 1.92 million mt during Feb 1-10

Output of cobalt sulphate is likely to rise 26.4% year on year to 37,300 mt