The Decrease in Output of Cobalt Salt in May Mainly Came from Intermediate Smelters

According to China Customs data, in August 2026, China's lithium hydroxide imports amounted to 5,115.17 tonnes, down 38.5% month-on-month from 8,322.16 tonnes in July; exports amounted to 4,789.36 tonnes, down 25.4% month-on-month from 6,419.51 tonnes in July. Lithium hydroxide remained in net import that month, with net imports of about 325.81 tonnes, markedly narrowing from 1,902.65 tonnes in July. On the import side, Indonesia remained the main source in August. China imported 2,592.19 tonnes from Indonesia, accounting for 50.7% of total imports, but this was down 41.7% month-on-month from 4,444.37 tonnes in July; the impact of the concentrated arrival of previously accumulated cargo has clearly faded. Imports from South Korea were 1,058.42 tonnes, accounting for 20.7%; imports from Australia were 524.43 tonnes; imports from China's domestic bonded customs supervision areas were 514.12 tonnes; imports from Germany were 420.00 tonnes, up 42.4% month-on-month, making it one of the few sources to increase month-on-month that month. On the export side, in August China still mainly exported lithium hydroxide to South Korea and Japan. Exports to South Korea were 3,142.11 tonnes, accounting for 65.6% of total exports, down 34.3% month-on-month; exports to Japan were 1,087.45 tonnes, accounting for 22.7%, down 16.6% month-on-month; exports to Poland were 360.04 tonnes, making it a newly emerging major export destination that month. Other export destinations included India (59 tonnes), Singapore (40 tonnes), Turkey (23 tonnes), and the Netherlands (20 tonnes), etc., with relatively small volumes.

Since 10 July, SMM Chinese sulfuric acid price index from Copper smelters has declined for 11 consecutive weeks on a weekly basis. This weekend, sulphuric acid prices were further reduced in some regions, with the ex-works price of 98% smelting acid falling below 1,000 yuan/mt. However, demand from the fertiliser industry has yet to show any clear improvement, and there are no signs that exports of sulphuric acid and phosphate fertiliser can be restarted, leaving the market dominated by a strong wait-and-see sentiment.

In August 2026, China's imports of cobalt hydrometallurgical intermediate products totaled approximately 7,876 physical tonnes, down 51% MoM but up 50% YoY. Of this, imports from the DRC were about 7,774 physical tonnes, down 51% MoM and up 62% YoY. The average import price of cobalt hydrometallurgical intermediate products in August 2026 was $15,495 per physical tonne, down 13.51% MoM. Of the intermediate products imported from the DRC this month, around 3,682 physical tonnes entered Zhejiang and Guangdong provinces as logistics goods under special customs supervision (bonded logistics), accounting for 46.8% of China's total imports; general trade accounted for about 3,913 physical tonnes, or 49.7%; and processing trade with imported materials accounted for about 179 physical tonnes, or 2.3%. In addition, China imported a combined 101 physical tonnes of intermediate products from South Africa, Vietnam, and Zambia via general trade this month. The decline in imports this month was mainly driven by two factors. First, typhoons in August forced port closures, delaying some cargoes originally scheduled to arrive in August into September. Second, cobalt salt prices kept falling through August, weakening smelters' willingness to purchase raw materials; miners struggled to conclude new tenders, and some chose to keep cargoes in storage in other overseas regions, waiting for demand to recover before shipping. From January to August 2026, China's cumulative imports of cobalt hydrometallurgical intermediate products reached 44,792 physical tonnes, down 84% YoY.