Quotations for cobalt-related products collectively "fall," while cobalt chloride smelters maintain firm quotes. Will prices fluctuate at a high level subsequently? [Weekly Observation]

SMM News on May 30: In the last week before the Dragon Boat Festival, spot quotes for cobalt products all declined to varying degrees amidst the general performance of downstream demand. Although cobalt chloride quotes continued to fall, smelters showed a clear reluctance to budge on prices, driving its prices to fluctuate at a high level... SMM has compiled the price changes of cobalt products this week, as detailed below:

Refined Cobalt:

According to SMM spot quotes, refined cobalt continued to maintain its downward trend this week. As of May 30, the spot quote for refined cobalt fell to 220,800-247,000 yuan/mt, with an average price of 233,900 yuan/mt, a decrease of 1,950 yuan/mt or 0.83% from May 23.

》Check SMM Cobalt and Lithium Spot Quotes

Regarding the reasons for the decline in spot quotes for refined cobalt, SMM understands that it was mainly due to some recent news that disrupted market sentiment, pushing down the transaction prices of refined cobalt and leading to certain panic selling in the market. Currently, this situation appears to be a short-term emotional outburst, with no significant expected deviation in the actual supply and demand structure. From the supply and demand perspective, on the supply side, with the declining profitability of refined cobalt production, refined cobalt output slightly decreased this month. Smelters continued to fulfill long-term contracts, and the spot order market still relied on trader supplies. On the demand side, downstream producers maintained a purchasing-as-needed rhythm, with no significant improvement in purchase activity.It is expected that next week, the spot price of refined cobalt may continue to remain in the doldrums.

Cobalt Salts (Cobalt Sulphate and Cobalt Chloride):

Cobalt Sulphate:

According to SMM spot quotes, cobalt sulphate spot quotes continued to decline throughout the week. As of May 30, the spot quote for cobalt sulphate fell to 47,200-49,900 yuan/mt, with an average price of 48,550 yuan/mt, a decrease of 0.92% from May 23.

》Check SMM Cobalt and Lithium Spot Quotes

According to SMM, from the supply and demand perspective, on the supply side, the quotes from mainstream cobalt sulphate smelters have not changed, but spot quotes for cobalt sulphate from recycling plants continued to decline significantly, with extremely sporadic overall transactions and transaction prices far below the actual quotes. On the demand side, the overall purchasing sentiment of downstream producers was poor, with no improvement in the order situation of material plants. Raw materials were still being consumed from inventory, and producers' purchase willingness continued to decrease, maintaining only fixed inquiries without any buying actions. Against this backdrop,SMM expects that next week, the spot price of cobalt sulphate may fluctuate weakly.

Cobalt Chloride:

Regarding cobalt chloride, according to SMM spot quotes, cobalt chloride quotes also declined significantly this week compared to the past. As of May 30, the spot quote for cobalt chloride fell to 58,900-60,400 yuan/mt, with an average price of 59,650 yuan/mt, a decrease of 0.91% from May 23.

According to SMM, the quotes from major smelters in the cobalt chloride supply side remained firm, indicating a certain reluctance to sell. However, some smelters showed a stronger willingness to sell, leading to a small number of low-priced transactions in the market, which subsequently pulled down the overall spot price. From the demand side, downstream enterprises mainly engaged in just-in-time procurement and generally held a certain level of cobalt salt inventory. They made fewer inquiries and maintained a strong wait-and-see sentiment. Despite this, due to the ongoing shortage of raw materials, the market's bullish sentiment remained high and consistent.It is expected that next week, the spot price of cobalt chloride will continue to fluctuate at highs and is unlikely to decline.

Regarding Co3O4:

According to SMM's spot quotes, the spot quotes for Co3O4 also faced downward pressure this week. As of May 30, the spot quotes for Co3O4 fell to the range of 199,000-207,800 yuan/mt, with an average price of 203,400 yuan/mt, representing a 1.26% decline compared to May 23.

According to SMM, from the supply side, the quotes from Co3O4 smelters were lowered, and the smelters' willingness to sell increased somewhat. On the demand side, most LCO producers had already completed their order procurement in the early stage and still held a certain level of inventory. They adopted a wait-and-see attitude and had a low willingness to stockpile. Therefore, market transactions this week were mainly focused on executing existing orders, with overall market activity remaining low.Considering that the price of cobalt salt, the raw material, remained at highs, the downside room for the spot price of Co3O4 in the short term is limited. It is expected that the spot price will maintain highs.

In terms of news:Hanrui Cobalt previously released its Q1 2025 performance report. According to the announcement, the company achieved a total operating revenue of 1.501 billion yuan in Q1, up 14.56% YoY. The net profit attributable to shareholders of the publicly listed firm was 42.8596 million yuan, up 39.77% YoY.

When asked about the company's current products and capacities, Hanrui Cobalt stated that its cobalt products include refined cobalt powder, cobalt hydroxide, cobalt carbonate, cobalt chloride, refined cobalt, etc. Among them, in terms of cobalt powder, Anhui Hanrui has a fully automated production line with an annual capacity of 5,000 mt of refined cobalt powder, leading globally in terms of capacity and automation level. Its cobalt powder exports rank among the top in China. The cobalt hydroxide capacity is 10,000 mt/year, and the refined cobalt capacity reaches 15,000 mt/year. In addition, Ganzhou Hanrui put into operation the "Project with an Annual Output of 5,000 mt of Electrodeposited Nickel and 5,000 mt of Electrodeposited Cobalt" in July 2024. Currently, its electrodeposited cobalt capacity has reached 15,000 mt. Copper products: Mainly copper cathode, with a capacity of 70,000 mt/year. Specifically, the copper cathode capacity of its subsidiary Hanrui Metal is 50,000 mt, and that of Congo Metal is 20,000 mt. Other products and capacities: The planned capacity of high-grade nickel matte is 20,000 mt/year, currently under construction. The capacity of cathode materials is 5,000 mt/year.

Additionally, Hanrui Cobalt was questioned about the impact of the DRC's restrictions on cobalt exports on the company. It responded that in February 2025, the DRC made a decision to suspend cobalt intermediate product exports for four months. Following the DRC's export ban, cobalt product prices saw a significant increase. The company maintains a safety stock of raw materials. The export ban did not have a major impact on the company's production.

In 2024, the company achieved a total revenue of 5.95 billion yuan, up 24.25% YoY; net profit attributable to shareholders of publicly listed firms was 202 million yuan, up 45.85% YoY. Regarding the reasons for the company's performance growth, Hanrui Cobalt stated that it was mainly due to the expansion of the company's copper and cobalt production capacity, as well as an increase in production and sales. In terms of cobalt production in 2024, Hanrui Cobalt produced a total of 16,169.17 mt (metal content) of cobalt products, a significant increase of 94.78% YoY; sales reached 15,400.65 mt (metal content), up 70.26% YoY, primarily driven by the commissioning of the company's 10,000 mt refined cobalt project.

Annual report data shows that Hanrui Cobalt is mainly engaged in the R&D, production, and sales of refined cobalt powder, cobalt hydroxide, electrodeposited cobalt, electrodeposited copper, and other copper and cobalt products. Centered around copper and cobalt products, the company has formed a complete industrial process from the development and acquisition of raw cobalt ore to the processing and smelting of cobalt ore, and ultimately to the production of cobalt intermediate products and cobalt powder. It is one of the few domestic enterprises with a complete industrial chain for non-ferrous metal cobalt.

At the end of the reporting period, the company's cobalt powder ranked among the top three in global market share. In July 2024, the company completed the construction of a 5,000 mt electrodeposited cobalt and a 5,000 mt electrodeposited nickel project in Ganzhou. Considering the process similarity and actual market conditions, the 5,000 mt electrodeposited nickel project was simultaneously converted into a 5,000 mt electrodeposited cobalt project. By the end of 2024, Ganzhou Hanrui had a production capacity of 15,000 mt of electrodeposited cobalt.