Co3O4: Long-Term Contracts Dominate Supply in a Tight Balance, High Prices Approach a Phase Peak

This week, Co3O4 demand remained robust, with the overall market showing a stable pattern. On the supply side, there was a concentrated effort to hold prices firm, and leading producers' quotes had climbed to a high of 360,000-365,000 yuan/mt. Due to steady downstream demand, major suppliers mainly focused on executing long-term contracts, reducing the proportion of spot orders in the market, which further intensified the tightness of spot resources. Demand side, cathode material enterprises adopted a cautious procurement strategy, primarily restocking to meet existing production orders. As the growth rate of new orders from downstream slowed recently, additional bulk purchases and stockpiling needs from cathode plants significantly weakened. With current high prices nearing a short-term peak and without stronger demand drivers, it is expected that Co3O4 prices will enter a plateau phase in the near term, largely stable.