In May, China's cobalt chloride production was 18,811 tonnes, an increase of 3.40% compared to the previous month but a drop of 12.27% on year. In May, the market sentiment continued to be calm and smelters mainly remained stable production. Meanwhile, the demand for Co3O4 was flat, while some factories increased their production due to new OEM orders, resulting in an overall increase in market supply.
It's likely that the production of China's cobalt chloride in June will reach 17,549 tonnes, a decrease of 3.53% MoM. In June, it is expected that the demand for Co3O4 will remain relatively stable. Howeve, the production of electrolytic cobalt may continue to decrease due to the difficulty in repairing profits in the short term, resulting in a decrease in overall market demand for cobalt chloride. Combined with the tight supply of raw materials from smelters and sustained high prices, it is estimated that the production of cobalt chloride in June may experience a month-on-month decline.
Source: Mysteel
Edited by Cassie Li, lixiangying@mysteel.com
