Slower inventory decline for cobalt sulphate in May-June

SHANGHAI, Jun 16 (SMM) – China's cobalt sulphate output stood at 4,640 mt in metal content in May, a month-on-month increase of 5% and year-on-year increase of 69%. Some companies switched their cobalt chloride production lines to produce cobalt sulphate in May due to stronger demand from ternary precursor customers; Jiangxi suppliers gradually resumed production and increased supply.

Inquiries in the cobalt sulphate market are currently active, and smelters are expected to increase production schedules. China's cobalt sulphate supply is expected to increase to 4,880 mt of metal content in June, an increase of 5% month-on-month and 84% year-on-year.

Average monthly price of cobalt sulphate was 72,000 yuan/mt in May, a drop of 6% month-on-month and a gain of 56% YoY. Prices of cobalt sulphate fell. As downstream demand increased at end-May, negotiation power over pricing turned towards cobalt salt plants.

Inventory decline for cobalt sulphate in June is expected to narrow. Meanwhile, high raw material costs will keep low cobalt sulphate inventory at precursor factories. Cobalt sulphate prices should stabilise in June.