China’s Cobalt Sulfate Production Declines Amid Sluggish Demand and High Costs

In October, China's cobalt sulfate production totaled 19,527 tonnes, representing a decline of 1.04% month-on-month (MoM) and 10.13% year-on-year (YoY). The cumulative production from January to October reached 228,121 tonnes, with a decrease of 7.28% YoY. The market faced sluggish downstream demand, and end-side users showed limited interest in building up stocks. Additionally, cobalt sulfate producers were forced to reduce production due to a prolonged profit squeeze and elevated costs. However, top-tier smelters maintained high operating rates, which offset some of the production cuts, resulting in only a slight decline in production for the month.

Looking ahead to November, China's cobalt sulfate production is estimated to be 18,750 tonnes, decreasing by 3.98% MoM and 29.2% YoY. The market is expected to enter an off-season, with downstream demand showing signs of fatigue. Consequently, most smelters may decrease production, except for a few top-tier ternary producers purchasing on a rigid demand basis. Meanwhile, the quantity of recycled materials is expected to decline due to a decrease in the supply of end-side products, affecting the raw material availability for some recycling enterprises. As a result, cobalt sulfate production in November is anticipated to continue its gradual decline.