Enterprises that Stopped Production due to the COVID Pandemic in Zhejiang Resumed the Production this week

SHANGHAI, Dec 29 (SMM) –The COVID pandemic worsened in Zhejiang, Anhui, and Shanxi. Some areas of Zhejiang in early December. Zhejiang authorities across various tiers gradually strengthened prevention and control measures, thus affecting the production of lithium battery plants. A ternary precursor producers and two cobalt salt plants suspended the production on December 10.

However, the pandemic in Shaoxing, Ningbo, and Hangzhou in Zhejiang was under control. The above-mentioned three companies that stopped production also resumed the production this Monday. The output of ternary cathode materials, ternary precursors, cobalt sulphate and cobalt chloride will decline 200 mt, 600 mt, 350 mt and 600 mt respectively in December due to the pandemic, accounting for 0.5%, 1%, 6% and 6.5% respectively of the total supply of the industry that month. 

The overall impact of the pandemic on the ternary precursor and the material side was relatively limited, far less than the cobalt salt. Overseas cobalt prices rose sharply, coupled with year-end promotions by downstream producers, leading to an increase in the demand. The raw material costs of cobalt salt plants increased. The market held a positive outlook on cobalt salt prices.  Cobalt sulphate rose sharply by 4,000 yuan/mt on December 14, the average price rose from 95,000 yuan/mt to 99,000 yuan/mt and cobalt chloride rose by 7,000 yuan/mt. Cobalt sulphate and cobalt chloride prices are expected to stabilise at high levels.