[SMM analysis] the price of cobalt sulfate reduced by cobalt sulfate in a leading cobalt smelter in East China may hit bottom in a short time.

Published: Jun 6, 2019 08:49

Source: Shanghai Nonferrous Metals Network

Save

SMM, June 6 / PRNewswire-Asianet /-

Recently, the cobalt sulfate market has been in the doldrums. On June 5, SMM cobalt sulfate quoted 4.1-43000 yuan per ton, with an average price of 42000 yuan per ton. The discount price for electrolytic cobalt and cobalt chloride was 40, 000 yuan and 10, 000 yuan, respectively. And cobalt sulfate raw material cobalt hydroxide price is higher, SMM June 5 cobalt hydroxide quotation 9.7 US $10.2 / lb, enterprise profitability is damaged, production power is insufficient. According to SMM research, in order to cope with the low market price of cobalt sulfate, a leading cobalt smelter in Zhejiang has converted about 400 tons of cobalt sulfate production capacity to nickel salt since May, and in order to cope with the risk of subsequent cobalt price fluctuations, actively go to finished product inventory. The downturn of cobalt sulfate market is directly related to the weakening of dynamic market demand. Recently, the production of ternary materials market has shrunk, the demand for upstream raw materials has shrunk, the battery factory has adjusted the demand structure, and the demand for 56 series products has declined in the short term. The market expects three yuan of demand or maintain the current level in the next two months, it is difficult to grow. According to SMM data, from January to April 2019, the cobalt sulfate balance in China showed that cobalt sulfate stocks were about 600 metal tons. In May 2019, China's cobalt sulfate production or month-on-month decline of 11%, the balance between supply and demand in May showed de-inventory. As a result, the price of cobalt sulfate may hit bottom in the short term.

SMM Cobalt Lithium Research team

Hu Yan 021 51666809

Hong Lu 021 51666814

Ning Ziwei 021 51666780

Qin Jingjing 021 51666828

2019 (fourth) Ni-Co-Li-mn Industry chain Summit-Global Lithium Technology Symposium invites cathode materials and lithium battery enterprises to explore the new trends of industrial chain development, interpret industry policy trends, and analyze future price trends! Review 2018 with 90% of the bosses, purchasing and general workers in the industry, look forward to 2019, and imagine 2020!

Meeting details: 2019 (fourth) Ni-Co-Li-mn Industry chain Summit (click on the link to see details)

[2019 Ni-Co-Li-mn Industry chain Summit]

Boutique meeting, New year feast!

Summit consultation, Ms. Wang

15221119163 (same as WeChat)

Cobalt production mining lithium import and export

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 hours ago

[SMM Weekly Review] The cobalt sulphate market remained generally sluggish this week, but market sentiment for procurement recovered compared to the previous period, supported by positive news from the upstream mining sector.

This week, the cobalt sulphate market remained largely sluggish overall. However, supported by positive news from the upstream mining sector, market purchasing sentiment showed some recovery compared to the previous period. Supply side, as the Chinese New Year holiday approaches, most smelters have successively arranged for production halts and maintenance. Combined with mining news strengthening bullish expectations for the future market, some enterprises have chosen to suspend quotations, while those maintaining quotations have raised their target prices to 96,000-98,000 yuan/mt. Demand side, due to concerns about a rapid price increase for cobalt sulphate after the holiday, downstream enterprises' purchase willingness has strengthened. It is reported that some companies' purchase intention prices for high-nickel cobalt sulphate have rebounded to 92,000 yuan/mt, while the purchase intention prices for low-nickel cobalt sulphate are in the range of 95,000-96,000 yuan/mt. Overall, as logistics gradually halt before the Chinese New Year, actual market transactions are expected to be quite limited next week, and cobalt sulphate prices are likely to remain largely stable. After the holiday, as downstream enterprises gradually resume procurement, prices may regain an upward trend.

11 hours ago

[SMM Weekly Review] The domestic refined cobalt market experienced limited overall changes this week, with spot prices fluctuating at lows.

This week, the domestic refined cobalt market saw limited overall changes, with spot prices fluctuating at lows. Supply side, affected by the decline in futures prices, mainstream smelters' spot premiums were too high, leading them to lower ex-factory prices; traders were bullish on the market outlook, hedgers raised spot-futures price spread quotes, while some unilateral speculators temporarily suspended quotations to observe the market. Demand side, as prices gradually stabilized, purchase willingness among some end-users recovered, with mainstream transaction prices concentrated in the range of 415,000–420,000 yuan/mt. Fundamentally, this round of price correction in domestic refined cobalt was mainly driven by market capital fluctuations and the broad decline in other metal prices. In the short term, as cobalt intermediate products still cannot arrive at ports in large quantities, the tight supply pattern of upstream raw materials has not fundamentally changed, and refined cobalt prices are expected to remain supported on the downside.

11 hours ago

[SMM Weekly Review] The cobalt intermediate products market remained in a state of "quoted prices without actual transactions" this week, with prices stabilizing in the range of $25.5-$26.0/lb.

The cobalt intermediate products market remained in a state of nominal pricing with thin trading this week, with prices holding steady in the range of $25.5–26.0/lb. News such as the US "stockpiling plan" and the acquisition of certain cobalt mining rights of overseas miners by US-funded enterprises heightened market concerns about cobalt raw material shortages in China in 2026, strengthening suppliers' willingness to hold prices firm. However, as the year-end approaches, some smelters have entered the stage of clearing production lines and preparing for shutdowns, leading to a noticeable decline in purchase willingness and resulting in sluggish actual market transactions. Overall, against the backdrop of large-scale arrivals of cobalt intermediate products remaining distant, increased geopolitical risks are expected to exacerbate the structural tightness of domestic intermediate products, maintaining upward pressure on prices.

11 hours ago