In October, China's cobalt powder production moved up 2.50% MoM to 780 tonnes, and rose 0.84% compared to last year. In October, orders from the traditional carbide sector, a key downstream market for cobalt powder, remained generally stable. Leading producers, leveraging their long-term contract advantages, provided strong support for the operational rates, resulting in limited overall production volatility. Cobalt powder currently commands a significant premium, and with most smelters having already secured their orders, the supply pressure on raw materials had a limited impact on production during the month.
It's estimated cobalt powder production in November may decline 1.28% MoM to 770 tonnes, with an increase of 0.92%. In November, the downstream cobalt powder market is expected to remain primarily focused on inventory drawdown, with purchasing activity likely to stay cautious. Coupled with high raw material costs and tight market supply, smelters are facing rising production costs and procurement pressures. Their primary focus will be on maintaining stable production to ensure long-term contract supply. Cobalt powder output in November is projected to remain generally stable with a slight decrease.
Edited by Cassie Li, lixiangying@mysteel.com
