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On the demand side, spreading COVID in China has restricted the downstream procurement of precursors, resulting in a decline in precursor outt in April. The impact of the pandemic continues in May, and some leading manufacturers have begun to ramp up the production approaching half-year reporting period. It is expected that downstream power and electronics battery output will increase in May. SMM believes that China's total demand for cobalt sulphate in May will increase by 9.7% month-on-month. But considering that the production in May is mainly based on old raw material inventories, the purchasing demand will be low and it is expected that the prices of cobalt salt may continue to decline in May.
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