Quotations for cobalt products collectively decline, with refined cobalt prices falling by 6,200 yuan. Smelters' willingness to sell Co3O4 increases [[Weekly Observation]]

SMM News on May 23: This week, cobalt product quotations have collectively declined. The refined cobalt market is still digesting social inventory. As cobalt prices fall, production cuts at smelters may continue. Meanwhile, spot quotations for Co3O4 have also seen a significant drop, with a noticeable decrease in the phenomenon of holding back from selling... SMM has compiled the changes in spot quotations for the cobalt market this week, as detailed below:

Refined Cobalt:

According to SMM spot quotations, refined cobalt spot quotations have shown a continuous downward trend this week. As of May 23, refined cobalt spot quotations have fallen to 223,700-248,000 yuan/mt, with an average price of 235,850 yuan/mt, a decrease of 6,200 yuan/mt from May 16, representing a 2.56% decline.

》Check SMM Cobalt and Lithium Spot Quotations

According to SMM, in the refined cobalt market, from the supply side, the market is still digesting social inventory at its current pace. The economic viability of refined cobalt production continues to decline, and production cuts at smelters are likely to persist. In terms of quotations, traders' quotations continue to fall in line with the futures market. Recently, some traders have exited the market and sold their inventory due to funding costs. From the demand side, amid falling prices, the purchase situation of downstream producers has slightly improved, with inquiries and buying interest picking up.It is expected that next week, refined cobalt spot prices may continue to fluctuate.

Cobalt Salts (Cobalt Sulphate and Cobalt Chloride):

Cobalt Sulphate:

According to SMM spot quotations, cobalt sulphate spot quotations have also shown a downward trend this week. As of May 23, cobalt sulphate spot quotations have temporarily stabilized at 48,000-50,000 yuan/mt, with an average price of 49,000 yuan/mt, a decrease of 200 yuan/mt from May 16, representing a 0.41% decline.

》Check SMM Cobalt and Lithium Spot Quotations

According to SMM, from the cobalt sulphate supply side, spot quotations from both smelters and recyclers have declined. Actual transactions are mainly small, sporadic orders, and the transaction price of cobalt sulphate has further dropped. From the demand side, the overall purchase sentiment of downstream producers is poor. With some ternary precursor plants experiencing a slight reduction in orders, the overall stockpiling demand is not strong. Additionally, as Co3O4 producers have built up inventory in the early stage, Co3O4 sales have slowed down slightly in the short term, and producers' purchase willingness has further declined. Currently, market transactions are mainly small, sporadic orders, and no bulk purchases have been observed.It is expected that next week, cobalt sulphate spot prices may continue to fluctuate in the doldrums.

Cobalt Chloride:

According to SMM spot quotations, cobalt chloride spot quotations have continued to fall this week. As of May 23, cobalt chloride spot quotations have dropped to 59,500-60,900 yuan/mt, with an average price of 60,200 yuan/mt, a decrease of 150 yuan/mt from May 16, representing a 0.25% decline.

From the perspective of supply and demand, on the supply side, due to the ongoing shortage of raw materials, some smelters have a strong willingness to support prices and exhibit a certain degree of reluctance to sell. However, there are also smelters that are not optimistic about future price trends and choose to sell at low prices. On the demand side, downstream enterprises have a certain level of inventory and only maintain just-in-time procurement, with few inquiries in the market.It is expected that next week, if demand remains weak, the spot price of cobalt chloride may continue to decline further.

Regarding Co3O4:

According to SMM spot quotes, the spot quotes for Co3O4 also failed to escape the downward trend this week. After a continuous decline last week, it only temporarily stabilized on the first trading day before continuing to fall. As of May 23, the spot quotes for Co3O4 had dropped to 202,000-210,000 yuan/mt, with an average price of 206,000 yuan/mt, a decrease of 2,250 yuan/mt from May 16, representing a decline of 1.08%.

According to SMM, from the supply side, although smelters' quotes are relatively stable, their willingness to sell has increased, and the phenomenon of holding back from selling has significantly decreased. On the demand side, downstream LCO producers have differing opinions on the market outlook, with a strong wait-and-see sentiment, and only make necessary procurements to meet daily production needs. Affected by the decline in LCO prices, it is common for producers to bargain down purchasing prices of raw materials, and there is little willingness to stockpile. Against the backdrop of the overall weak market, there have been individual transactions at low prices.It is expected that the peak procurement period for Co3O4 has not yet arrived next week, and the spot price may continue to fall.

On the news front,this week, the import and export data for cobalt-related products were released. According to customs data, China's imports of cobalt hydrometallurgy intermediate products in April 2025 were approximately 18,600 mt (metal content), up 5% MoM. In terms of the average import price, in March 2025, the average import price of cobalt hydrometallurgy intermediate products in China was $15,820/mt (metal content). By country, the DRC remained the main importing country in March, with imports of approximately 18,500 mt (metal content) (calculated based on a 35% grade), an average import price of $15,857/mt (metal content), and an import share of approximately 99%.》Click to view details

For unwrought cobalt, according to customs data, China's imports of unwrought cobalt in April 2025 were approximately 839 mt (metal content), up 60% MoM and 230% YoY. In terms of the average import price, the average import price of unwrought cobalt in China in April 2025 was $26,831/mt (metal content), up 36% MoM. From January to April 2025, cumulative imports reached 2,337 mt (metal content), up 175% YoY.

On the export side, China's exports of unwrought cobalt in April 2025 were approximately 4,086 mt (metal content), up 201% MoM and 556% YoY. In terms of average export prices, the average export price of unwrought cobalt from China in March 2025 was $31,119/mt (metal content), up 28% MoM. From January to April 2025, the cumulative exports reached 7,397 mt in metal content, up 185% YoY. 》Click for details

It is worth mentioning that recently, Tengyuan Cobalt released a record of investor activities. When asked about the company's capacity, Tengyuan Cobalt stated that as of the end of Q1, the company had a total capacity of 26,500 mt in metal content for cobalt products, 10,000 mt in metal content for nickel products, 10,000 mt in metal content for manganese products, 5,000 mt for lithium carbonate, and 60,000 mt for copper products.

In addition, when asked about how long the company's current inventory of cobalt raw materials could sustain production given that the cobalt ban in the DRC had not yet been lifted, Tengyuan Cobalt responded that the company maintained a certain level of safety inventory. At the same time, considering actual market conditions, it obtained production raw materials by timing, quantity, and price through secondary resource recycling and purchases from traders. The company would also closely monitor the progress of the event and make corresponding preparations.