The Decrease in Output of Cobalt Salt in May Mainly Came from Intermediate Smelters

SHANGHAI, Jun 9(SMM) - China’s cobalt sulphate output stood at 4,642 mt in metal content in May, a month-on-month decrease of 29% and a year-on-year decrease of 9%.

On the raw material side, the arrivals of intermediate products in May were still low. Considering the high finished product inventories and the sluggish market prices, some intermediate product manufacturers suspended or reduced production. The frequent decline in refined cobalt prices in May caused fluctuations in the cost of recycled materials, and recycled material smelters tended to be cautious in purchasing raw materials, while output fell slightly from the previous month. Therefore, the overall output of cobalt salts declined in May, mainly from intermediate smelters.

On the demand side, the output of downstream precursor manufacturers recovered from April as the pandemic gradually improved in May. The demand for cobalt salt was modest while enterprises mainly consumed inventory and purchased on rigid demand. It is expected that the impact of the floods in South Africa on cobalt raw materials will be transmitted to China in June, and the arrivals of intermediate products may decline.

Downstream production resumed further in June, and the demand for precursor widened. The cobalt salt plants mainly consumed the finished product inventory. The smelter that stopped production in May will resume production in June, and the output of cobalt sulphate is expected to increase slightly in June.

Output of cobalt sulphate is likely to stand at 5,113 mt in metal content in June, up 10% on the month.