[SMM Weekly Review] Cobalt market prices continued to be in the doldrums this week

Refined Cobalt:

This week, refined cobalt spot prices continued to decline under pressure. Supply side, mainstream smelters kept EXW prices at 422,000 yuan/mt; after the rapid price drop, most traders suspended quotations, with only a few hedgers selling small volumes at a small premium to futures. Demand side, the continued downturn dampened downstream buying interest, and alloy and magnetic material enterprises, with a "rush to buy amid continuous price rise and hold back amid price downturn" mentality, mostly postponed purchases and remained on the sidelines. This week's price decline was driven by two factors: first, mid-week, an overseas price reporting platform sharply cut the low-end price of cobalt intermediate products, weakening market sentiment and dragging down refined cobalt prices; second, as a result, some funds were forced to cut losses and exit, further exacerbating the price pullback. In the short term, the market is likely to remain in a volatile and pressured state, and the stabilization of refined cobalt prices still depends on the return to stability of other cobalt products, especially cobalt salt prices.

Cobalt Intermediate Products:

This week, cobalt intermediate product prices edged lower. Supply side, mainstream miners and traders kept their quotations in the range of $25.5-26/lb; a small number of low-quality cargoes were traded below $25/lb during the week, but due to significant quality discounts and limited volumes, the impact on mainstream prices was relatively small. In terms of shipments, Q1 2026 quota approvals remained slow due to procedural complexity, and combined with tight logistics in the DRC and low priority for cobalt raw material shipments, the arrival of large volumes was further delayed. Current estimates suggest bulk arrivals may take place around August. In the short term, demand-side support remained weak, and prices may largely move sideways. For the market to stabilize and strengthen subsequently, it still depends on the recovery of downstream demand and the restoration of cobalt salt prices.

Cobalt Sulphate:

This week, cobalt sulphate trading was sluggish, with a continued tug-of-war between upstream and downstream, and prices held steady overall. Supply side, mainstream smelters continued to hold prices firm, with the quotation range maintained at 88,000-92,000 yuan/mt; some recycling smelters and traders, pressured by liquidity needs, lowered offers for small volumes to 84,000-85,000 yuan/mt. Demand side, the persistent price decline dampened downstream buying interest, and some enterprises indicated purchase intentions of only 81,000-82,000 yuan/mt, but the gap with sellers' offers was large, making actual transactions difficult. In the short term, cobalt sulphate prices are likely to remain in the doldrums, and a stabilization and recovery of the market still depends on the material release of concentrated restocking demand from downstream.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875

Xiao Wenhao 021-51666872

Zhang Haohan 021-51666752

Wang Zihan 021-51666914

Wang Jie 021-51595902

Xu Yang 021-51666760

Yang Lianting 021-51595835

Wang Zhaoyu 021-51666827