Cobalt Sulphate Prices Fell in December amid Extended Oversupply

SHANGHAI, Jan 12 (SMM) - China’s cobalt sulphate output stood at 6,908 mt in cobalt content in December, down 6% MoM, but up 23% YoY. Affected by sharp decline in domestic battery production, the orders for cobalt salt and precursors also fell. In response, integrated precursor plants and top-tier cobalt salt smelters reduced their production schedules.

The demand for ternary batteries took a heavy blow after China removed it's NEV subsidies at the start of 2023. Since the domestic ternary precursors are dominated by the 5 and 6-series, which contain a relatively large amount of cobalt, cobalt demand felt the shock as well. With the Chinese New Year (CNY) holiday less than a month away, lacklustre demand for cobalt sulphate drove smelters to take an early CNY break.