On June 24, the cobalt sulfate market stopped falling and rebounded
Jun,25,25
Price Trends
Today, the tax-inclusive spot price of cobalt sulfate (Co≥20.5%) in China has risen, and is currently 48,100~49,200 yuan/ton, with an average price of 48,650 yuan/ton, up 1,500 yuan/ton from yesterday.
Comprehensive
Today, the cobalt sulfate market has stopped falling and rebounded. Affected by the export ban of cobalt raw materials from the Democratic Republic of the Congo, the supply of cobalt sulfate in the domestic market is expected to tighten, and it is more difficult for smelters to purchase raw materials. Some companies have begun to reduce production capacity. Although there is still inventory buffer at the current port, the market is bullish and traders' quotations are rising rapidly. Downstream ternary precursor companies are forced to accept high prices, and the purchase volume has increased month-on-month, but small and medium-sized manufacturers have temporarily postponed stocking due to cost pressure.
Domestic Market
The news that the export ban of cobalt from the Democratic Republic of the Congo has been extended to September has triggered a new round of market tensions. The price of domestic cobalt sulfate has risen sharply, and the mainstream quotation has risen rapidly. The inventory of raw materials of smelters is generally less than 20 days of production capacity. Some companies have started production reduction plans, and there has been a "rush for goods" in the spot market. Downstream ternary precursor companies urgently added purchase orders, and traders were reluctant to sell.
International market
The international cobalt sulfate market fell into a supply panic, and European spot prices soared. The extension of the Congo ban has led to a global supply gap of about 35%, and giants such as Tesla and LG have launched bidding purchases. If Congo's policies are not relaxed before September, the cost of ternary batteries may exceed the tolerance limit of car companies, forcing the technology route to accelerate changes.
Market forecast
Cobalt sulfate prices may maintain a strong upward trend in the short term. As port inventories continue to be consumed, the supply gap may widen in July, but we need to be vigilant: 1) The actual implementation of Congo's policies; 2) The substitution effect of recycled cobalt; 3) The tolerance limit of downstream. If the export ban continues, prices in the third quarter may hit a historical high of 60,000 yuan/ton.
