Prices of cobalt products are expected to continue to moderate in the near term with the arrival of seaborne cobalt raw materials and the continued weak demand for cobalt sulphate.

Prices of cobalt are expected to further retreat this week as the arrival of cheap cobalt raw materials impacts the domestic spot market and grow cobalt salt producers inclination to destock. 

Prices of refined cobalt and cobalt intermediate products in China edged lower last week. Some domestic cobalt suppliers cut output due to shortage of raw materials, but some producers held production of refined cobalt at high levels as refined cobalt prices outperformed that of cobalt salts. 

Trades in the cobalt market remained muted as concerns about tight raw materials supply have faded. Cobalt prices may again retreat with the arrival of seaborne cobalt raw materials at end-June. 

Prices of cobalt rebounded last week, but the possibility of a sustained price rally is limited given the continued weakness in the new energy vehicle (NEV) market. Spot cobalt transactions were light last week as large-scale producers of high-temperature alloy and magnetic materials had sufficient stockpiles of cobalt raw materials. 

Demand remained subdued in China’s cobalt market last week while a handful of consumers purchased as required. The market may find some near-term support from the extended national lockdown of South Africa, which will last until end April and aim to curb the COVID-19 pandemic.  

Inventory pressure of lithium carbonate, a raw material for digital and power batteries, may continue to mount in April as Chinese lithium salt producers have not yet planned to wind down production. Elevated inventories together with limited downsides in lithium carbonate prices with support from costs, however, may trigger output cut in the second quarter. 

The global widespread of COVID-19 has forced many countries to enforce stringent containment measures which result in a heavy impact on global economic activity. Over the past few months, we saw serious disruption of manpower, transportation and production in China. We are now seeing these scenarios happening around the world.

Prices of prebaked anode in China, an essential material used in aluminium smelting, will face further downside risks after April as a negative impact on demand from the COVID-19 outbreak continues to weigh on prebaked anode profits.

China’s nickel ore imports from the Philippines, one of the major sources of ore supply, could be badly hit in April as the Philippines has suspended all mining operations in its nickel mining hub...