SHANGHAI, Apr 15 (SMM) – China produced about 3,500 mt in metal content of cobalt sulphate in March, 94% higher on the month, showed SMM data, as cobalt salt producers resumed 70-80% of their capacity last month amid a slowdown in the spread of the coronavirus in China.
An increase in orders of cobalt sulphate prompted some cobalt salt plants to shift their capacity from cobalt chloride, SMM learned.
On a yearly basis, cobalt sulphate output in March declined 10% as an absence of full recovery of demand kept major producers from returning to normal operating rates.
Production in the first quarter amounted to 8,400 mt in metal content, down 26% from the same period last year.
Overall inventory pressure, however, mounted in March as the pandemic severely curtailed demand.
SMM expects China’s cobalt sulphate production to edge up 6% from March to 3,700 mt in metal content in April, standing 14.5% lower on the year.
A large-scale cobalt salt plant in China only normalised operation in April after a month-long stoppage due to the COVID-19, and this will further add to domestic inventory pressure of the battery material.
