Cobalt Product Prices Mostly Declined in the First Week After the Holiday, with Poor Downstream Acceptance of High-Priced Cobalt Salt. What Will Happen to Subsequent Prices? [Weekly Observation]

SMM May 9 News: In the first week after the Labour Day holiday, spot quotes for cobalt products reversed the previous upward trend, with the overall market performance remaining relatively stable. The previously rising spot price of refined cobalt also paused, and cobalt salt prices even saw low-price transactions... SMM compiled the price changes of cobalt products this week as follows:

Refined cobalt:

According to SMM spot quotes, refined cobalt remained very stable in the first week after the Labour Day holiday, with prices unchanged from the last trading day before the holiday. As of May 9, the spot price of refined cobalt was maintained at 235,000-249,000 yuan/mt, with an average price of 242,000 yuan/mt.

View SMM Cobalt and Lithium Spot Quotes

According to SMM, on the supply side, social inventory in the market remains high. Due to persistently high raw material costs, the economic viability of refined cobalt production continues to decline, and smelters are continuing production cuts. On the demand side, downstream producers are maintaining only necessary production schedules, with low enthusiasm for stockpiling and a strong wait-and-see sentiment.It is expected that refined cobalt prices may maintain a fluctuating trend next week.

Cobalt salts (cobalt sulphate and cobalt chloride):

According to SMM spot quotes, cobalt sulphate prices slightly turned downward this week. After a small drop of 50 yuan/mt on May 8, the spot price of cobalt sulphate fell to 48,500-50,200 yuan/mt, with an average price of 49,350 yuan/mt, a decrease of 0.1% compared to April 30.

View SMM Cobalt and Lithium Spot Quotes

From a fundamental perspective, on the supply side, cobalt salt smelters continue to stand firm on quotes, but some recycling plants have slightly lowered cobalt sulphate quotes due to financial pressure. Old social inventory has slightly decreased, and low-priced old stock is being gradually digested by the market. On the demand side, downstream producers have a strong wait-and-see sentiment, and market inquiries are extremely mediocre.It is expected that if the DRC introduces follow-up policies on cobalt, it may stimulate downstream producers to make purchases, and spot transactions of cobalt sulphate may see a recovery.

According to SMM spot quotes, cobalt chloride spot prices also showed a downward trend this week. On May 9, the spot price of cobalt chloride slightly dropped by 50 yuan/mt, to 59,800-61,000 yuan/mt, with an average price of 60,400 yuan/mt, a decrease of 0.08%.

This week, cobalt chloride prices slightly declined. On the supply side, as the raw material shortage issue remains unresolved, most producers maintain high quotes with little willingness to sell at low prices. On the demand side, the market showed slight weakness after the holiday, with fewer inquiries and purchases mainly driven by rigid demand. Poor acceptance in the downstream market led to a slight decrease in cobalt chloride transaction prices.Looking ahead to next week, SMM expects that if demand continues to show no improvement, the transaction price of cobalt chloride may further decline. However, due to the strong reluctance of manufacturers to sell, the price drop of cobalt chloride may be limited.

Regarding Co3O4:

According to SMM spot quotations, after the Labour Day holiday, Co3O4 quotations generally showed a downward trend. As of May 9, the spot price of Co3O4 fell to 203,500-215,000 yuan/mt, with an average price of 209,250 yuan/mt, down 750 yuan/mt from April 30, a decrease of 0.36%.

SMM learned that the Co3O4 market was relatively sluggish after the holiday, with most smelters maintaining pre-holiday quotations, but trading activity weakened. On the demand side, some companies have completed necessary procurement tasks, and their acceptance of high-priced Co3O4 has decreased, leading to a decline in spot prices. It is expected that next week, as LCO manufacturers' inventories gradually deplete, there may be some restocking demand, triggering a new round of procurement.Therefore, the downside room for Co3O4 spot prices may be limited, and it is more likely to fluctuate at higher levels.

On the news front,Hanrui Cobalt was asked in late April about the impact of the DRC's decision to suspend cobalt exports for four months on the company. Hanrui Cobalt responded that the company has safety stock for its products and is currently operating normally. The company will closely monitor the latest industry policies and adjust its strategy and product structure in a timely manner. The company has wholly-owned subsidiaries in the DRC, including Congo Maite Mining Co., Ltd. and Hanrui Metals (Congo) Co., Ltd.

On April 23, the company released its Q1 performance report, mentioning that it achieved operating revenue of 1.501 billion yuan in Q1 2025, up 14.56% YoY; net profit attributable to shareholders of the publicly listed firm was 42.8596 million yuan, up 39.77% YoY.

It is worth noting that the company also released a feasibility analysis on April 18 regarding the launch of hedging business. The announcement mentioned that the purpose of launching hedging business is to reduce the impact of price fluctuations of raw materials or products related to production and operation and exchange rate fluctuations on the company's production and operation, make full use of the hedging function of the futures market, effectively control market risks, improve the efficiency of foreign exchange fund usage, control financial costs, enhance the company's overall risk resistance ability, strengthen the stability and sustainability of the company's operating performance, and enhance financial stability. This is in line with the company's prudent and steady risk management principles.

The commodity futures hedging involves trading varieties related to the raw materials or products required for the company's production and operation, such as copper, cobalt, and nickel futures.The risks hedged by the hedging transactions in 2025 include reasonably avoiding the price fluctuation risks of copper, cobalt, nickel, etc., related to raw materials or products, and preventing market risks arising from changes in commodity prices. The business categories of foreign exchange hedging products include forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange options, currency swaps, interest rate swaps, interest rate options, etc., or combinations of the aforementioned products. The risks hedged by the hedging transactions in 2025 include exchange rate risks and interest rate risks, etc.