SMM

This week, the spot price of Co3O4 continued to experience a slight correction. In terms of supply, the market trading atmosphere was sluggish, with most smelters adhering to a price floor of 190,000 yuan/mt. However, some smelters still sold at prices below this level. The main driving factor behind the recent continuous price decline is the approaching mid-year, when most smelters have a need to clear inventory. The emergence of low-priced resources further suppressed the spot price. On the demand side, LCO producers generally adhered to the strategy of "produce based on sales" and maintained a cautious wait-and-see attitude towards Co3O4 procurement. The DRC will finalize its policies related to cobalt raw materials by the end of this week, and it is expected that the cobalt market will undergo significant changes next week. If the policy direction aligns with the current mainstream market expectations, namely "extending the export ban and implementing quota management," then the price of Co3O4 is highly likely to rise sharply next week.