SMM monthly inventory index for cobalt intermediate products and refined cobalt has been released. Stay tuned for the monthly inventory index for cobalt sulphate.

Affected by the export policies of the Democratic Republic of the Congo (DRC), the cobalt market has experienced significant fluctuations this year. In this complex market environment, the inventory levels of smelters serve as a "barometer" for the industry and are a key indicator for predicting price trends. To help industry participants better grasp market dynamics, SMM's New Energy Cobalt Database has calculated the inventory index of cobalt intermediate product raw materials for cobalt smelters and the finished refined cobalt inventory index for refined cobalt smelters, providing the industry with a comprehensive tool for monitoring inventory dynamics! The upstream and downstream inventory indices for cobalt sulphate are currently under development, so stay tuned.

1. Monthly Inventory Index: How It Is Calculated

The SMM Cobalt Monthly Inventory Index adopts a standardized data processing method. Through quantitative analysis of the absolute inventory values at various stages of the industry chain (standardized based on the monthly production of each enterprise in the current month), raw inventory data is converted into comparable indexed indicators. This index system can visually present the relative relationship between current inventory levels and market demand, providing industry participants with a scientific and objective reference for positioning inventory cycles.

         On the Construction of Absolute Inventory Quantities:

         1. Monthly inventory of downstream cobalt smelters in China = Monthly production of cobalt intermediate products used by Chinese cobalt smelters (including monthly production of cobalt sulphate, cobalt chloride, and refined cobalt not included in cobalt salt statistics) * Inventory cycle of cobalt intermediate products for smelters

         2. Monthly inventory of upstream cobalt smelters in China = Monthly production of Chinese refined cobalt smelters * Inventory cycle of finished cobalt intermediate products for smelters

         Methodology for Index Construction:

          1. Monthly inventory index of downstream cobalt smelters in China = Monthly inventory of downstream cobalt smelters in China / Monthly demand for cobalt intermediate products in China in the current month

          2. Monthly inventory index of upstream cobalt smelters in China = Monthly inventory of upstream cobalt smelters in China / Monthly demand for refined cobalt in China in the current month

2. Monthly Inventory Index: Significance of Use

          1. Cobalt salt producers: Adjust production schedules and sales strategies based on downstream inventory levels to avoid inventory backlogs.

          2. Downstream enterprises of cobalt salts: Grasp the rhythm of raw material procurement, reduce inventory costs, and improve capital utilization efficiency.

          3. Traders: Seize opportunities for price fluctuations brought about by inventory cycles and improve purchasing and sales strategies.

3. Monthly Inventory Index: Release Time

        Regularly updated on the 5th of each month, reflecting the monthly inventory quantities and inventory indices of the previous month in a timely manner.

4. Monthly Inventory Index: Future Improvement Directions

         1. Increase the upstream and downstream inventory indices of cobalt sulphate

         2. Refine the inventory structure of various cobalt products and increase the upstream and downstream inventory indices.