Cobalt and nickel price review and forecast
Refined cobalt
For the week ending March 7, refined cobalt prices remained steady. Supply is steady with normal production from manufacturers, while demand recovery is sluggish, leading to few actual transactions. Spot market prices stay firm due to short-term supply tightness, with strong quotations, but higher-price deals were quite few.
Cobalt intermediate products
For the week ending March 7, cobalt intermediate products prices held steady. Supply side, including transport and shipping delays, have tightened overall supply and concentrated spot goods. Demand side, cobalt smelters face delays in contracted raw material deliveries, necessitating ongoing spot purchases. Despite market constraints, high raw material conversion costs and scarce low-priced cobalt intermediates lead buyers to a wait-and-see stance. Cobalt intermediate product prices may thus remain stagnant in the upcoming week.
Cobalt Salts (Cobalt Sulphate and Cobalt Chloride)
For the week ending March 7, cobalt salt prices experienced a minor rebound. Supply side, high raw material costs are keeping the overall operating rate low. Rising prices dampened downstream buying appetite. With March restocking largely done, actual buying has slowed. While refined cobalt and traditional sectors remain profitable, sustaining some demand, the overall volume is modest, offering limited demand support. For the week ending March 7, the market had weak supply and demand, with salt producers inclined to keep prices firm due to high costs. Spot prices are expected to remain stagnant in the upcoming week.
Cobalt Salt (Co3O4)
For the week ending March 7, Co3O4 price remained stable. Smelting plants are operating normally. Downstream, inventories are sufficient, with few new orders in the week ending March 7. Despite a minor uptick in raw material costs, the downstream LCO industry shows weak acceptance of higher Co3O4 prices. Given the oversupply, Co3O4 prices have stayed stable.
Nickel sulphate
Nickel sulphate prices rose in the week ending March 7, influenced by a supply squeeze and rising costs. High costs are hindering hydrometallurgical recycling plants from ramping up production, keeping salt producers' inventories low and indicating tight supply will persist into March. Demand for precursors in March is strong, with manufacturers' low inventories driving increased orders and a rise in nickel sulphate purchases. Prices for MHP and high-grade nickel matte increased in the week ending March 7, resulting in higher raw material costs and operating losses for some salt factories due to the steeper rise in raw material prices compared to finished products amidst tight supply-demand. Cost factors suggest nickel sulphate prices may continue to rise.
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