SMM analysis on China June Co3O4 output and July forecast

In June, China's Co3O4 production was 7,590 mt, up 3% MoM and down 4% YoY. The increase in June production was mainly due to the end of maintenance by some companies in June. Although the conventional market is highly competitive, there is still a certain demand in the high-voltage market, and the operating rate of high-voltage Co3O4 companies remained relatively stable, resulting in MoM increase in production.

In July, with the release of new smartphone models in Q3 and the impact of current low cobalt prices, downstream companies may have an intention to stockpile in advance, leading to increased demand for Co3O4. Therefore, Co3O4 production in July is expected to maintain an upward trend, reaching about 7,790 mt, up 3% MoM and 8% YoY.