[SMM Analysis] Co3O4 production rose MoM in May, with market participants mostly adopting a cautious wait-and-see attitude

In May 2025, Co3O4 production increased both MoM and YoY.

In terms of supply, despite the overall downward trend in the spot price of Co3O4 in May, it remained at a relatively high level compared to previous periods, with relatively optimistic profit margins. As a result, the operating rates of some enterprises increased, and production enthusiasm was high, driving a slight increase in market supply. From the demand side, LCO enterprises maintained a strong wait-and-see attitude, focusing on just-in-time procurement and fulfilling existing orders, with relatively stable demand.

It is expected that by June, the issue of tight raw material supply will remain difficult to resolve. Co3O4 enterprises will adopt a more cautious approach to production scheduling, with some enterprises potentially experiencing significant production cuts. Therefore, the overall market supply is expected to decline.