SMM Weekly Forecast on China’s Domestic Cobalt Market

SHANGHAI, Sep. 10 (SMM) -- Although LME cobalt prices and MB cobalt price rise steadily, domestic cobalt failed to catch up with their rising pace. In this context, China’s imports of refined cobalt will be curbed to certain extent. Increased inventories in overseas market also weigh on prices. It is expected that traded prices for domestic refined cobalt prices may move around RMB 330,000-360,000/mt 

Transactions for cobalt related products become more and more sluggish in the spot market along with rising prices. Prices of cobalt chloride will break through RMB 75,000/mt, but transactions will be few. With regard to tricobalt tetroxide market, close attention should not only be paid to demand from downstream lithium cobalt oxide industry and battery industry but should also be paid to capacity expansion at Jinchuan Group.

As downstream inventories are ample, upward momentum of lithium cobalt oxide will be weak. Recently, lithium cobalt oxide price spread is expanding, and lithium cobalt oxide prices will move between RMB 240-245/kg. It is expected that prices for tricobalt tetroxide will be temporarily stable between RMB 240-245/kg.

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