In May 2026, China's cobalt powder production reached 614 tonnes, representing a month-on-month decrease of 19.53% and a year-on-year decrease of 21.18%. During the month, traditional downstream demand from sectors such as hard alloys remained persistently weak, resulting in insufficient purchasing momentum. Producers faced inventory backlogs, while delays in the arrival of cobalt intermediates at the raw material end kept the supply tightness unresolved. Compounded by cautious market sentiment, declining cobalt powder prices squeezed producer margins, leading to significant production cuts by some manufacturers.
In June 2026, cobalt powder production is expected to reach 634 tonnes, up 3.26% MoM but down 18.4% YoY. Downstream demand is not anticipated to improve significantly in June, with downstream users generally adopting a cautious wait-and-see approach and maintaining a slow restocking pace. Overall demand is expected to lack substantive support.
Edited by Cassie Li, lixiangying@mysteel.com
