【SMM Analysis】Post-holiday Work Resumption Delays Cause Cobalt Sulfate Increase to Fall Short of Expectations

In March, China's production of cobalt sulfate was 4,795 metric tons, representing an 18% increase month-on-month, but a 36% decrease year-on-year. The primary reason for the increase in production this month is that most primary raw material companies resumed normal operations after the end of the Spring Festival holiday, while recycling companies have been slow to restart due to weak market demand. Meanwhile, post-holiday raw material prices remained high, putting cost pressure on salt manufacturers, which constrained part of the production increase, hence the actual increase in production was less than expected.

It is anticipated that in April, the market does not hold an optimistic outlook for future demand, and with inventory accumulating, it will be difficult for smelting plants to increase their operation rates. The estimated production is about 4,888 metric tons, marking a 2% increase month-on-month and a 19% decrease year-on-year.