[SMM Analysis] Cobalt sulphate production fell by 9.71% MoM in June

In June 2025, SMM cobalt sulphate production decreased by 9.71% MoM and increased by 3.80% YoY.

In terms of the sources of production raw materials, cobalt intermediate products accounted for approximately 59%, MHP accounted for approximately 19%, and recycled materials accounted for approximately 22%. Due to the extension of the DRC ban, cobalt intermediate product prices continued to rise, and smelters' cobalt intermediate product raw material inventories gradually decreased. Currently, recycled materials and MHP are gradually squeezing out cobalt intermediate products.

In terms of supply, from early to mid-June, the spot price of cobalt sulphate showed a continuous downward trend. During this period, some cobalt sulphate smelters gradually chose to cut production or even suspend production due to weak production economics or shortages of raw material inventories. After the extension policy was announced in the DRC on the 21st, upstream quotes for cobalt sulphate returned to near the previous highs, and profits improved somewhat. However, due to the wait-and-see attitude of downstream players during this period, the market remained relatively sluggish. Therefore, smelters maintained stable production.

In terms of demand, downstream orders for ternary cathode precursor and Co3O4 enterprises have not yet shown significant improvement. They have temporarily chosen to wait and see the market, focusing on digesting previous inventories. A few enterprises with shorter days of raw material inventories have focused on just-in-time procurement, with demand remaining relatively stable.

It is expected that by July, the issue of tight raw material supply for enterprises will become more prominent. Production schedules for cobalt sulphate enterprises will become more cautious, and individual enterprises may experience significant production cuts or even suspensions. It is projected that cobalt sulphate production schedules will decrease by 7.93% MoM in July.