Cobalt chloride has risen for four consecutive days! Prices of cobalt products varied, with the ban significantly boosting cobalt salt production [Weekly Observation]

SMM April 3 News: This week, cobalt product quotations showed mixed changes. The high prices of raw materials provided some support for certain cobalt product quotations. As the holiday approached, downstream activity also declined. However, influenced by the import tariffs from the DRC, cobalt salt prices surged significantly, leading to improved profits and a notable increase in cobalt salt production. SMM compiled the price changes of cobalt products this week as follows: Refined Cobalt: According to SMM spot quotations, refined cobalt spot prices showed a slight decline this week. After a small drop of 500 yuan/mt on April 2, prices stabilized temporarily. As of April 3, refined cobalt spot quotations remained stable at 234,000-254,000 yuan/mt, with an average price of 244,000 yuan/mt, down 0.2% from March 28. Fundamentally, on the supply side, smelters continued to stand firm on quotes this week, with strong willingness to export overseas. On the demand side, downstream producers had relatively sufficient inventory, with weak buying inquiries, leading to continued sluggish market transactions. In the short term, raw material prices are expected to continue fluctuating upward, which may provide some support for refined cobalt prices. The refined cobalt spot market is likely to maintain a fluctuating upward trend. Cobalt Salts (Cobalt Sulphate and Cobalt Chloride): According to SMM spot quotations, cobalt sulphate spot prices also showed a downward trend this week. As of April 3, cobalt sulphate spot prices fell to 48,600-50,700 yuan/mt, with an average price of 49,650 yuan/mt, down 100 yuan/mt from March 28, a decrease of 0.2%. From the supply side, although mainstream salt producers maintained firm quotations, traders' dumping of low-priced old stock increased market downward pressure. Some small and medium-sized salt producers released low-priced stock due to capital turnover needs, leading to a slight increase in the gap between actual transaction prices and quotations. On the demand side, as the holiday approached, downstream companies' inquiry activity declined, with overall weak transactions and strong market观望情绪. Next week, downstream companies may start restocking, and cobalt sulphate spot prices are expected to fluctuate upward. Cobalt chloride spot prices rose significantly this week, with the increase slowing slightly on the last trading day. As of April 3, cobalt chloride spot prices rose to 59,000-61,000 yuan/mt, with an average price of 60,000 yuan/mt, up 600 yuan/mt from March 28, an increase of 1.01%. On the supply side, smelters, noting that raw material prices remained high, were unwilling to sell at low prices, keeping market quotations at high levels. On the demand side, the procurement peak for downstream Co3O4 manufacturers had passed, and market activity declined compared to the previous two weeks. However, some manufacturers, concerned about further price increases or due to their own production needs, still made high-price transactions, pushing cobalt chloride spot prices slightly higher. Next week, cobalt chloride prices are expected to remain high. Co3O4: According to SMM spot quotations, Co3O4 spot prices remained stable this week. As of April 3, Co3O4 spot prices were maintained at 202,500-220,000 yuan/mt, with an average price of 211,250 yuan/mt, unchanged from March 28. On the supply side, most smelters maintained stable quotations, and the market gradually returned to rationality. On the demand side, as most manufacturers had completed previous purchases, new orders were limited this week, and market acceptance of high prices decreased, leading to reduced transaction activity and a market buffer period. In the short term, Co3O4 prices are expected to remain high. However, due to weak purchase willingness from downstream LCO manufacturers, prices may see a slight decline next week. In terms of news, SMM released March production data for cobalt sulphate and Co3O4. Influenced by the DRC export ban, domestic cobalt sulphate and Co3O4 production increased significantly in March. Cobalt sulphate production rose 54% MoM, mainly due to the DRC incident, which led to a rapid increase in cobalt sulphate prices, improved profitability, and new capacity releases. Production increased significantly MoM. In April, most companies are expected to maintain high output with new capacity ramping up. Although some companies may see slight production cuts due to insufficient raw material reserves, overall production is expected to increase slightly by 3% MoM. Co3O4 production also showed significant YoY and MoM growth in March, mainly due to low inventory levels at downstream LCO manufacturers, who urgently needed to purchase, driving stable production at Co3O4 companies. Additionally, cobalt export news raised concerns about price increases among LCO manufacturers, leading to some advance purchasing needs, further boosting Co3O4 market activity and increasing production schedules at some companies. In April 2025, driven by downstream demand, Co3O4 companies may receive more orders. Related Readings: [SMM Analysis] Cobalt Intermediate Product Spot Prices Rise Slightly [SMM Analysis] Refined Cobalt Spot Prices Slightly Adjusted Down, Weak Downstream Support [SMM Analysis] Cobalt Sulphate Spot Prices Slightly Adjusted Down, Strong Market观望情绪 [SMM Analysis] Cobalt Chloride Prices Slightly Increased This Week [SMM Analysis] Co3O4 Prices Remained Stable This Week [SMM Analysis] Co3O4 Production Increased Significantly in March Due to DRC Export Ban