In November, China's electrolytic cobalt production went down 45.13% MoM to 310 tonnes, with a YoY decline 94.22%, according to Mysteel statistics. In November, domestic smelters faced pressure in raw material restocking. While electrolytic cobalt inventories remained high, downstream demand stayed subdued with persistent profit depression. Consequently, smelters widely reduced or suspended producing electrolytic cobalt, leading to a continued decline in its supply during November.
It's likely that China's electrolytic cobalt production may be at 300 tonnes in December, with drops of 3.23% MoM and 94.52% YoY. In December, following sustained production cuts and suspensions, supply gaps have begun to emerge. However, with inventory levels remaining elevated and the actual inventory digest progressing slowly, electrolytic cobalt prices are expected to struggle to recover in the short term. Consequently, electrolytic cobalt supply is projected to experience a slight decline in December.
Edited by Cassie Li, lixiangying@mysteel.com
