China's cobalt powder production stood at 787 tonnes in March, reflecting a month-on-month increase of 12.91% but a year-on-year drop of 7.95%. In March, cobalt powder smelters gradually resumed normal production. Coupled with some manufacturers stockpiling in advance to prepare for the Democratic Republic of the Congo (DRC) export ban, capacity utilization rates improved, driving a month-on-month increase in the output. Downstream buyers primarily made purchases based on rigid demand, while leading companies relied on long-term orders.
In April, cobalt powder production is expected to reach 780 tonnes. The traditional off-season for consumer electronics has arrived, with demand unlikely to show significant improvement and likely continuing its year-on-year decline. If downstream orders fail to rebound, manufacturers are more inclined to maintain a "low inventory, steady production" strategy. Meanwhile, uncertainties in raw material supply persist, which may also constrain short-term growth in cobalt powder output.
Source: Mysteel
Edited by Cassie Li, lixiangying@mysteel.com
