SHANGHAI, Aug 14 (SMM) –
In July, China's tricobalt tetraoxide (Co3O4) production registered at 7,230 mt, representing an 8% contraction month-on-month, yet exhibiting a substantial year-on-year increase of 71%. The cumulative output of Co3O4 from January to July amounted to 41,217 mt, reflecting a 6% decrease compared to the same period last year.
On the supply front, Co3O4 production experienced a downturn in July relative to June. This can be attributed to the off-peak demand season for digital requirements during July and August, combined with extensive restocking carried out by downstream LCO companies prior to this period. The cobalt salt prices took a dip starting from mid-July, fostering a heightened sense of caution among LCO entities. Due to a slump in downstream orders, some Co3O4 producers scaled down their output.
Looking towards August, the demand-side analysis reveals an unimproved high-voltage LCO market, with no visible growth in the e-cigarette market. Certain LCO companies have already ceased production and Co3O4 companies have been bolstering their stockpiles since late July, with overall production schedules tapering off in line with downstream demand. The projected Co3O4 output for August is set at 6,630 mt, marking an 8% decrease month-on-month but witnessing a 34% surge year-on-year.
