China's Co3O4 production reached 9,396 tonnes in March, marking a month-on-month increase of 28.89% and a year-on-year growth of 25.61%. The increase in production in March was mainly due to disturbances in the raw material side. Enterprises with high reserves of cobalt intermediates in the early stage took the opportunity to improve production flexibility and increase operating rates. The price of Co3O4 was at a high level, and some small and medium-sized enterprises saw business opportunities and chose to increase production. Meanwhile, top-tier ones also moved up the output in order to ensure stable delivery of long-term orders in the early stage, leading to an increase in the overall Co3O4 production in March.
In April, China's Co3O4 production is projected to be 8,800 tonnes, representing a MoM decrease of 6.34% but a YoY growth of 12.10% as downstream users are cautious in purchasing and the raw materials prices are at a high level. Thus the overall supply is tight and the LCO production drops slightly in April.
Source: Mysteel
Edited by Cassie Li, lixiangying@mysteel.com
