In December 2019, China's cobalt sulfate production was 3700 tons of metal tons, an increase of 2 per cent over the previous month and 1 per cent year on year. From January to December 2019, cumulative production of 43800 tons of metal tons, an increase of 15% over the same period last year.
The demand for cobalt sulfate increases with the downstream Spring Festival replenishment and the receipt of goods by traders, and the operating rate of large factories increases accordingly. In addition, the price difference between electrolytic cobalt and cobalt sulfate metal has eased, and the profit space of some recycled material smelters has increased slightly, so they choose to increase production.
The overall supply of the market has contracted, but it is still slower than the rate of reduction in demand, and the pressure on cobalt sulfate stocks has increased significantly. SMM expects the supply of cobalt sulfate in China to continue to decline in January 2020 due to lower demand, inventory pressure and a small reduction in production during the Spring Festival holiday.