SHANGHAI, Jul 13 (SMM) – China's cobalt sulphate output stood at 4,989 mt in metal content in June, a month-on-month increase of 8% and year-on-year increase of 88%. Cobalt sulphate companies received more orders and increased production in June due to growing demand from downstream ternary precursors. Some cobalt sulphate companies switched their nickel sulphate production lines to cobalt sulphate.
Cobalt sulphate supply may hit a new high in July as growing demand from ternary precursors drove some companies to switch cobalt chloride production lines to cobalt sulphate. SMM expects China's cobalt sulphate output to rise 5% MoM and 60% YoY to 5,230 mt in metal content in July.
Note: due to the commissioning of new production lines and downward trend of cobalt use, SMM has lowered demand coefficient for cobalt sulphate from the 6-series and 8-series ternary materials from July 2021, while demand coefficient from other series will remain unchanged.