Domestic Demand for Cobalt Sulphate Declined due to Power Rationing and Fewer Orders from LG

SHANGHAI, Oct 18 (SMM) - China’s cobalt sulphate output stood at 5,335 mt in metal content in September, down 6% MoM, but up 37% YoY. Some companies received notices of power rationing in late September. The production of cobalt sulphate was less affected than that of cathode materials due to lower energy consumption. Although the cobalt intermediate product costs of domestic smelters increased in October due to rising cobalt prices overseas, most companies are expected to increase their production schedules. China’s cobalt sulphate output is estimated at 5,515 mt in metal content in October, up 3% MoM and 35% YoY.

Chinese demand for cobalt sulphate totalled 5,011 mt in metal content in September, including 4,091 mt in metal content from ternary precursors, a drop of 3% MoM. The weaker demand was mainly due to the power rationing and fewer orders from LG, who is the battery supplier of General Motors. The demand will continue to decline in October as more ternary cathode material precursor companies will be affected by the power rationing. Chinese demand for cobalt sulphate is estimated at 4,881 mt in metal content in October, including 3,961 mt in metal content from ternary precursors.