In January 2020, China's cobalt sulfate production was 3000 tons of metal tons, down 19 per cent from the previous month and 23 per cent from a year earlier.

The demand for cobalt sulfate was affected by the Spring Festival holiday and the epidemic situation of new pneumonia, and the operating rate of large factories was reduced accordingly. The price difference between electrolytic cobalt and cobalt sulfate metal continued to ease, the profit space of some recycled smelters increased slightly, a small increase in inventory was selected on the eve of the Spring Festival, and the overall output in January was passively reduced due to the suspension of work during the Spring Festival holiday.

The overall supply in the market is shrinking, but still less than the rate of demand reduction, and the pressure on cobalt sulfate stocks continues to increase. SMM expects the supply of cobalt sulfate in China to increase slightly in February 2020 due to the outbreak of new pneumonia, lower downstream demand, and a small reduction in inventory pressure, but the inventory pressure is still high.