Cobalt Salts Still in Supply Surplus in August, and Prices May Decline Slightly

SHANGHAI, Aug 11 (SMM) - Domestic cobalt sulphate market again saw a supply surplus of 416 mt in metal content in July. Domestic cobalt sulphate production fell slightly in July. Overseas logistics recovered somehow, but the sluggish demand in SMM contained the the production enthusiasm of intermediates-based smelters, and the arrival of cobalt-based raw materials at ports remained stable. Cobalt recovered from recycled materials rose amid an animated recycling industry, aggravating the oversupply of cobalt salt. 
On the demand side, the top-tier precursor factories still mainly obtained raw materials through in-house production, while the external purchased were made on rigid demand as well as the sales performance. In July, the top-tier precursor factories, encouraged by the improvement of downstream demand, kept their production high, which recorded an increase compared with June, with the production growth contributed mainly by high-nickel products. It is expected that in August, the power-battery oriented precursor factories will still maintain high production, and the demand in the electronics sector may pick up slightly amid the frequent new product launch events of mobile phone manufacturers and the consumption of fresh college students in the third quarter. SMM cobalt sulphate demand is estimated at 5,702 mt in metal content in August, up 3.2% MoM.