Chinese cobalt sulfate producers cut output amid falling prices, stagnant demand

An increasing number of cobalt sulfate producers in China have cut, or are planning to cut, output in response to falling battery raw materials prices amid stagnant demand, market sources told Fastmarkets MB.

In addition, some producers have switched to producing other chemistry compounds, including cobalt chloride and nickel sulfate, sources added. But market participants have mostly downplayed the impact that these actions will have in terms of capping the recent downtrend in Chinese cobalt sulfate prices, pointing out that sluggish demand is the main reason behind the overall weakness in the market. Fastmarkets MB assessed the price of Chinese cobalt sulfate, 20.5% Co basis, at 40,000-41,000 yuan ($5,782-5,926) per tonne on Wednesday June 12, down by 2,000-3,000 yuan per tonne, or 5.8%, from 42,000-44,000 yuan per tonne on June 7. The price...

Published

Susan Zou

June 13, 2019

08:34 GMT

Shanghai