Cobalt Salt Prices Are Still Expected to Rise in Feb Despite Holiday Factor and Maintenance

SHANGHAI, Feb 15 (SMM) - Domestic cobalt sulphate market again saw a supply surplus of 550 mt in metal content in January China cobalt sulphate output added 15% month-on-month in January. Affected by the Spring Festival holiday and shutdown of some companies for maintenance in February, the supply of cobalt sulphate is expected to be 5,235 mt in metal content, an increase of 5.1% month-on-month.

On the demand side, cobalt salts saw increased demand in January due to quickly rising precursor orders. Although it is expected that some new production capacity will be released in February, there are still some enterprises being closed for maintenance, which will indirectly slow down growth in demand in February. The prices, however, has been raised slightly. Although the demand from PCAM manufacturers has slowed down, the shortage of cobalt salt remained. In addition, some PCAM manufacturers were bullish regarding the long-term price trend, and the purchasing sentiment has been rising post the CNY holiday. It is expected that the prices of cobalt salts will continue to rise in February.