Prices of cobalt sulphate rose 5% in March, and to fall in April

SHANGHAI, Apr 13 - The average monthly price of cobalt sulphate was 42,000 yuan/mt in March, up 5% MoM but down 65% YoY. Prices are expected to fall in April.

In the first ten days of March, the market optimism brought by traders’ dip-purchasing in the previous month, combined with recovery in ternary precursor industry and higher overseas refined cobalt prices, pushed up the prices of intermediate products. The cobalt salt factories thus raised prices due to cost issues. As such, prices of cobalt sulphate climbed slowly.

In the remaining days of the month, the shutdown of some ternary precursor plants lowered the average operating rate. The downstream demand did not justify the price rebound in early March, and cobalt salt plants lacked the motivation to raise prices. Meanwhile, scrap plants sold aggressively due to cost advantages. Cobalt prices thus fell back.

In early April, the production schedules of ternary precursors did not recover, and the prices of overseas intermediate products still have room to decline. Considering poor demand and higher cost, the prices of cobalt sulphate will continue to decline.