【SMM Analysis：Cobalt sulphate production continued to decline in October】

In October, China's cobalt sulphate production decreased by 1% MoM and 28% YoY. The main reasons for the production decline in October were: the current spot demand is sparse and social inventory is high, leading to a continuous decline in spot prices. Meanwhile, due to the firm performance of raw material prices, cobalt sulphate smelters faced significant cost pressure, resulting in losses. Consequently, the overall market operating rate remained at a low level. It is expected that in November, the supply and demand relationship for spot cargo will hardly reverse, so cobalt sulphate production is likely to continue to decline.