Cobalt sulphate destocking accelerated in April, prices to drop in May

SHANGHAI, May 19 (SMM) — China's cobalt sulphate output stood at 4,433 mt in metal content in April, up 3.1% month on month and 40% year on year. Capacity ramped up at some producers, while output at some producers in Jiangxi fell 50%-70% due to environmental protection inspections.

Output is expected to rise 4% month on month and 69% year on year to 4,619 mt in metal content in May as production resumed after environmental protection inspections ended in early May.

The average monthly price of cobalt sulphate was 77,000 yuan/mt in April, down 15% month on month and up 68% year on year. Downstream inquiries declined, weighing on prices.

Cobalt sulphate destocking is expected to slow down in May. Shortages of cobalt raw materials have eased. Supply of cobalt sulphate increased after environmental checks ended, while demand growth will have little effect on prices. As such, cobalt sulphate prices are expected to continue to fluctuate downward in May.