SHANGHAI, Jul 13 (SMM) — Prices of refined cobalt have stood well below other products since Chinese New Year. Some domestic manufacturers stopped production of refined cobalt. So far, Jiangsu Kailike Cobalt has resumed production. Other companies plan to resume production amid higher prices. Domestic supply of refined cobalt was low in the first half of the year. In May, the import volume of refined cobalt was 844 mt of metal content, an increase of 94% year-on-year. The overall domestic refined cobalt inventory pressure was relatively high.
Demand for alloys rebounded from overseas military and aerospace industry. This combined with stockpiling ahead of summer halts boosted trades of refined cobalt market. Traders' willingness to restock improved. Demand for domestic alloys and magnetic materials also picked up slightly, bolstering prices. Downstream buying interest improved.
Jiangxi still saw increase in output, but most large-scale smelters have stopped production for the annual maintenance until late July, so the spot supply decreased. Some smelters plants suspended due to the delayed arrival of raw materials and the overhaul of the natural gas pipelines in the industry park. It is expected that the supply will be reduced to 12,860 mt in July down 10.1% on the month.
The motive market was robust in June, new car models were launched, and the downstream users raised purchase volume to restock in advance for the production increase in H2 2021. The release o new production lines of domestic leading cathode material companies grew output of the 6 and 8 series products. Demand for high-nickel ternary 811 materials increased by 18% month-on-month. With the continuous ramp-up of new production lines, demand for lithium hydroxide from high nickel products will continue to increase by about 8% month-on-month in July.
