Tricobalt tetraoxide inventories rose further, supply and demand to improve in May

SHANGHAI, May 26 (SMM) — On the supply side, China's tricobalt tetraoxide output stood at 7,605 mt in April, a month-on-month increase of 0.9% and year-on-year increase of 46%. Some producers blended tricobalt tetraoxide with other metals and increased production ore self-use in April. The tight supply of raw materials for some customers have been eased and production scheduling increased in May. Tricobalt tetraoxide output is expected to rise 1.3% on the month and 38% on the year to 7,700 mt in May.

On the demand side, China's tricobalt tetraoxide demand based on LCO output stood at 5,967 mt in April with a month-on-month decrease of 10% and year-on-year increase of 22%. Orders for LCO decreased in the off-season, pressuring on demand for tricobalt tetraoxide. Some customers increased production in May after signing new orders and are expected to increase purchases slightly. Tricobalt tetraoxide demand from production of LCO is expected to rise 3% on the month and 32% on the year to 6,100 mt in May.