Cobalt Metal: This week, the domestic cobalt metal market saw limited overall changes, with spot prices rebounding slightly within a low range. Both supply and demand remained mediocre: mainstream smelters’ ex-works quotations were largely stable; approaching year-end, logistics gradually halted, and inquiries and quotations from traders and downstream enterprises essentially ceased, resulting in sluggish market activity. Fundamentally, cobalt intermediate products as raw materials have yet to arrive at ports in large volumes, and the structurally tight supply pattern upstream has not fundamentally shifted, continuing to provide some support for cobalt prices. Looking ahead, as market operations gradually resume after the Chinese New Year, restocking demand from downstream sectors is expected to be released, and refined cobalt prices are anticipated to retain upside room. Cobalt Hydroxide: This week, the cobalt intermediate products market continued to exhibit a “price without market” pattern. Supply side, most intermediate products from miners are still awaiting shipment locally in the DRC, with external quotations yet to resume, keeping spot supply tight. Demand side, as year-end approaches, some smelters have entered production line clearing and maintenance shutdowns, leading to a noticeable weakening in raw material purchase willingness and maintaining sluggish actual transactions. Overall, against the backdrop of an unclear timeline for large-scale arrivals of cobalt intermediate products at ports and escalating geopolitical risks, the structurally tight supply of cobalt raw materials in China may further intensify. Intermediate product prices are expected to retain upward momentum in the short term, with subsequent focus needed on logistics recovery pace and miners’ export progress. Cobalt Sulphate: This week, the cobalt sulphate market maintained generally sluggish operations, with spot prices largely stable. Supply side, approaching the Chinese New Year holiday, most smelters have successively scheduled maintenance shutdowns, reducing spot offers. Meanwhile, boosted by recent positive news from the cobalt ore sector, enterprises’ bullish expectations for the future have strengthened, leading producers to suspend quotations and tightening spot supply. Demand side, due to concerns over post-holiday cobalt sulphate price increases, downstream enterprises’ purchase willingness has recovered compared to the previous period, with some small and medium-sized ternary cathode precursor makers actively inquiring. However, with pre-holiday logistics halts imminent, actual transactions remained relatively limited, and overall market activity was subdued. Looking ahead, as logistics resume after the holiday and downstream enterprises gradually restart production and restock, demand is expected to be released progressively. Against the backdrop of phased supply tightening and sustained raw material cost support, cobalt sulphate prices are projected to regain an upward trend.

Refined Cobalt: The domestic refined cobalt market saw limited overall changes this week, with spot prices rebounding slightly within a low range. Both supply and demand remained mediocre: mainstream smelters' ex-works offers were largely stable; approaching year-end, logistics gradually halted, and inquiries and offers from traders and downstream enterprises basically ceased, resulting in sluggish market trading. Fundamentally, cobalt intermediate products have yet to arrive at ports in large volumes, and the structurally tight supply of upstream raw materials has not fundamentally shifted, continuing to provide some support for cobalt prices. Looking ahead, as market operations gradually resume after the Chinese New Year, downstream restocking demand is expected to be released, and refined cobalt prices are anticipated to retain upside room. Cobalt Intermediate Products: The cobalt intermediate products market continued to exhibit a "price without market" pattern this week. Supply side, most intermediate products from miners are still awaiting shipment locally in the DRC, with no resumed external offers, keeping spot cargo supply tight. Demand side, approaching year-end, some smelters entered production line clearing and maintenance shutdowns, leading to significantly weaker raw material purchase willingness, and actual market transactions remained sluggish. Overall, with the timing of large-scale arrivals of cobalt intermediate products at ports still unclear, coupled with escalating geopolitical risks, the structurally tight supply of cobalt raw materials in China may further intensify. Intermediate product prices are expected to maintain upward momentum in the short term, with subsequent focus needed on logistics recovery pace and miner export progress. Cobalt Sulphate: The cobalt sulphate market maintained generally sluggish operations this week, with spot prices largely stable. Supply side, nearing the Chinese New Year holiday, most smelters have successively scheduled maintenance shutdowns, reducing spot offers. Meanwhile, boosted by recent positive news from the cobalt ore sector, enterprises' bullish expectations for the future have strengthened, with producers suspending offers and spot cargo supply tightening. Demand side, due to concerns over post-holiday cobalt sulphate price increases, downstream enterprises' purchase willingness recovered somewhat compared to earlier periods, with some small and medium-sized ternary cathode precursor makers actively inquiring. However, with pre-holiday logistics halting imminently, actual transactions remained relatively limited, and overall market trading was subdued. Looking ahead, as logistics resume post-holiday and downstream enterprises gradually restart production and restock, demand is expected to be released progressively. Against the backdrop of phased supply tightening and sustained raw material cost support, cobalt sulphate prices are projected to regain an upward trend. SMM New Energy Research Team Cong Wang 021-5166-6838 Rui Ma 021-5159-5780 Disheng Feng 021-5166-6714 Yanlin Lü 021-2070-7875 Wenhao Xiao 021-5166-6872 Haohan Zhang 021-5166-6752 Zihan Wang 021-5166-6914 Jie Wang 021-5159-5902 Yang Xu 021-5166-6760 Lianting Yang 021-5159-5835 Zhaoyu Wang 021-5166-6827

SMM News on May 30: In the last week before the Dragon Boat Festival, spot quotes for cobalt products all declined to varying degrees amidst the general performance of downstream demand. Although cobalt chloride quotes continued to fall, smelters showed a clear reluctance to budge on prices, driving its prices to fluctuate at a high level... SMM has compiled the price changes of cobalt products this week, as detailed below: Refined Cobalt: According to SMM spot quotes, refined cobalt continued to maintain its downward trend this week. As of May 30, the spot quote for refined cobalt fell to 220,800-247,000 yuan/mt, with an average price of 233,900 yuan/mt, a decrease of 1,950 yuan/mt or 0.83% from May 23. 》Check SMM Cobalt and Lithium Spot Quotes Regarding the reasons for the decline in spot quotes for refined cobalt, SMM understands that it was mainly due to some recent news that disrupted market sentiment, pushing down the transaction prices of refined cobalt and leading to certain panic selling in the market. Currently, this situation appears to be a short-term emotional outburst, with no significant expected deviation in the actual supply and demand structure. From the supply and demand perspective, on the supply side, with the declining profitability of refined cobalt production, refined cobalt output slightly decreased this month. Smelters continued to fulfill long-term contracts, and the spot order market still relied on trader supplies. On the demand side, downstream producers maintained a purchasing-as-needed rhythm, with no significant improvement in purchase activity. It is expected that next week, the spot price of refined cobalt may continue to remain in the doldrums. Cobalt Salts (Cobalt Sulphate and Cobalt Chloride): Cobalt Sulphate: According to SMM spot quotes, cobalt sulphate spot quotes continued to decline throughout the week. As of May 30, the spot quote for cobalt sulphate fell to 47,200-49,900 yuan/mt, with an average price of 48,550 yuan/mt, a decrease of 0.92% from May 23. 》Check SMM Cobalt and Lithium Spot Quotes According to SMM, from the supply and demand perspective, on the supply side, the quotes from mainstream cobalt sulphate smelters have not changed, but spot quotes for cobalt sulphate from recycling plants continued to decline significantly, with extremely sporadic overall transactions and transaction prices far below the actual quotes. On the demand side, the overall purchasing sentiment of downstream producers was poor, with no improvement in the order situation of material plants. Raw materials were still being consumed from inventory, and producers' purchase willingness continued to decrease, maintaining only fixed inquiries without any buying actions. Against this backdrop, SMM expects that next week, the spot price of cobalt sulphate may fluctuate weakly. Cobalt Chloride: Regarding cobalt chloride, according to SMM spot quotes, cobalt chloride quotes also declined significantly this week compared to the past. As of May 30, the spot quote for cobalt chloride fell to 58,900-60,400 yuan/mt, with an average price of 59,650 yuan/mt, a decrease of 0.91% from May 23. According to SMM, the quotes from major smelters in the cobalt chloride supply side remained firm, indicating a certain reluctance to sell. However, some smelters showed a stronger willingness to sell, leading to a small number of low-priced transactions in the market, which subsequently pulled down the overall spot price. From the demand side, downstream enterprises mainly engaged in just-in-time procurement and generally held a certain level of cobalt salt inventory. They made fewer inquiries and maintained a strong wait-and-see sentiment. Despite this, due to the ongoing shortage of raw materials, the market's bullish sentiment remained high and consistent. It is expected that next week, the spot price of cobalt chloride will continue to fluctuate at highs and is unlikely to decline. Regarding Co3O4: According to SMM's spot quotes, the spot quotes for Co3O4 also faced downward pressure this week. As of May 30, the spot quotes for Co3O4 fell to the range of 199,000-207,800 yuan/mt, with an average price of 203,400 yuan/mt, representing a 1.26% decline compared to May 23. According to SMM, from the supply side, the quotes from Co3O4 smelters were lowered, and the smelters' willingness to sell increased somewhat. On the demand side, most LCO producers had already completed their order procurement in the early stage and still held a certain level of inventory. They adopted a wait-and-see attitude and had a low willingness to stockpile. Therefore, market transactions this week were mainly focused on executing existing orders, with overall market activity remaining low. Considering that the price of cobalt salt, the raw material, remained at highs, the downside room for the spot price of Co3O4 in the short term is limited. It is expected that the spot price will maintain highs. In terms of news: Hanrui Cobalt previously released its Q1 2025 performance report. According to the announcement, the company achieved a total operating revenue of 1.501 billion yuan in Q1, up 14.56% YoY. The net profit attributable to shareholders of the publicly listed firm was 42.8596 million yuan, up 39.77% YoY. When asked about the company's current products and capacities, Hanrui Cobalt stated that its cobalt products include refined cobalt powder, cobalt hydroxide, cobalt carbonate, cobalt chloride, refined cobalt, etc. Among them, in terms of cobalt powder, Anhui Hanrui has a fully automated production line with an annual capacity of 5,000 mt of refined cobalt powder, leading globally in terms of capacity and automation level. Its cobalt powder exports rank among the top in China. The cobalt hydroxide capacity is 10,000 mt/year, and the refined cobalt capacity reaches 15,000 mt/year. In addition, Ganzhou Hanrui put into operation the "Project with an Annual Output of 5,000 mt of Electrodeposited Nickel and 5,000 mt of Electrodeposited Cobalt" in July 2024. Currently, its electrodeposited cobalt capacity has reached 15,000 mt. Copper products: Mainly copper cathode, with a capacity of 70,000 mt/year. Specifically, the copper cathode capacity of its subsidiary Hanrui Metal is 50,000 mt, and that of Congo Metal is 20,000 mt. Other products and capacities: The planned capacity of high-grade nickel matte is 20,000 mt/year, currently under construction. The capacity of cathode materials is 5,000 mt/year. Additionally, Hanrui Cobalt was questioned about the impact of the DRC's restrictions on cobalt exports on the company. It responded that in February 2025, the DRC made a decision to suspend cobalt intermediate product exports for four months. Following the DRC's export ban, cobalt product prices saw a significant increase. The company maintains a safety stock of raw materials. The export ban did not have a major impact on the company's production. In 2024, the company achieved a total revenue of 5.95 billion yuan, up 24.25% YoY; net profit attributable to shareholders of publicly listed firms was 202 million yuan, up 45.85% YoY. Regarding the reasons for the company's performance growth, Hanrui Cobalt stated that it was mainly due to the expansion of the company's copper and cobalt production capacity, as well as an increase in production and sales. In terms of cobalt production in 2024, Hanrui Cobalt produced a total of 16,169.17 mt (metal content) of cobalt products, a significant increase of 94.78% YoY; sales reached 15,400.65 mt (metal content), up 70.26% YoY, primarily driven by the commissioning of the company's 10,000 mt refined cobalt project. Annual report data shows that Hanrui Cobalt is mainly engaged in the R&D, production, and sales of refined cobalt powder, cobalt hydroxide, electrodeposited cobalt, electrodeposited copper, and other copper and cobalt products. Centered around copper and cobalt products, the company has formed a complete industrial process from the development and acquisition of raw cobalt ore to the processing and smelting of cobalt ore, and ultimately to the production of cobalt intermediate products and cobalt powder. It is one of the few domestic enterprises with a complete industrial chain for non-ferrous metal cobalt. At the end of the reporting period, the company's cobalt powder ranked among the top three in global market share. In July 2024, the company completed the construction of a 5,000 mt electrodeposited cobalt and a 5,000 mt electrodeposited nickel project in Ganzhou. Considering the process similarity and actual market conditions, the 5,000 mt electrodeposited nickel project was simultaneously converted into a 5,000 mt electrodeposited cobalt project. By the end of 2024, Ganzhou Hanrui had a production capacity of 15,000 mt of electrodeposited cobalt.

On April 23, at the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo - Main Forum, hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., with Jiangxi Copper Corporation and Yingtan Land Port Holding Co., Ltd. as main sponsors, and Shandong Humon Smelting Co., Ltd. as a special co-organizer, Xinhuang Group and Zhongtiao Mountain Nonferrous Metals Group Co., Ltd. as co-organizers, Wang Jianlong, Deputy Director of Metallurgy Department One of China ENFI Engineering & Technology Co., Ltd., shared insights on the global copper smelting landscape and intelligent development. Ben Knoefler, Chairman of the Board of KCI Group, analyzed the global copper market for 2025. 1 Global Copper Resource Distribution Overall, the world's copper resources are relatively abundant, with an estimated 31 billion tons of land-based copper resources and 7 billion tons in deep-sea nodules. Natural copper minerals include native copper, oxides, and sulfides. The world's proven copper reserves are about 10 billion tons, and based on current mine production, the static assurance period for mining is approximately 45 years. In terms of regional distribution, the main areas with concentrated copper ore resources globally are: (1) The western foothills of the Andes in Peru and Chile, South America; (2) The Cordillera region in the western part of the North American continent, mainly in the US and Mexico; (3) Central Africa, particularly in the DRC and Zambia; (4) Central Asia, mainly Kazakhstan, Mongolia, and Russia; (5) Australia. The top five countries in terms of copper ore reserves are Chile, Peru, Australia, Russia, and the DRC, accounting for about 57% of the total. 2 Global Refined Copper Consumption Global copper consumption is mainly concentrated in two types of countries or regions. One type is traditional developed Western countries, where copper consumption is relatively stable. The other type is developing countries and regions experiencing rapid economic growth, which have higher copper consumption growth rates and are key factors in global copper consumption growth. According to ICSG statistics, global refined copper consumption in 2024 was 28.577 million mt, up 5.79% YoY. The growth in global refined copper consumption is mainly supported by strong apparent demand in China. The main areas of global copper consumption are power grids, construction, consumer goods, transportation, and engineering machinery, accounting for 28%, 27%, 22%, 12%, and 11% respectively. As a basic raw material, changes in copper consumption are closely related to global economic development. In recent years, consumption of copper plate/sheet and strip in traditional fields and copper foil for circuit boards has been relatively weak, while copper use in the power and new energy sectors has performed well. 3 Global Refined Copper Production and Capacity Distribution Global refined copper production in 2024 was 28.0228 million mt, up 4.07% YoY. The increase in refined copper production is mainly due to capacity expansion in China and the DRC, while production in other regions decreased by about 1%. As the largest consumer and producer of refined copper, China does not have a significant advantage in copper ore resources and needs to import large amounts of copper concentrates. China's refined copper production and copper concentrate imports In 2024, China's refined copper production was 13.644 million mt, and copper concentrate imports were 28.11 million mt. To address the current state of the copper smelting industry, relevant national departments are promoting the healthy and orderly development of the copper smelting industry through industrial policies, environmental protection policies, and other measures. In general, on the supply side, efforts are being made to deepen supply-side structural reforms, strictly control the disorderly expansion of copper smelting capacity, and accelerate intelligent and green transformation. On the demand side, enterprises are being guided to accelerate technological progress, overcome the shortcomings of copper-based new materials, and fully tap the potential applications of copper in new infrastructure and construction projects. Major Chinese Copper Smelters According to incomplete statistics, there are more than 40 copper smelters (production lines) nationwide, with four groups having a capacity of over 1 million mt/a. 4 Global Copper Smelting Processes and Their Development Copper Smelting Processes Pyrometallurgy (80%): Impurities are removed as slag at high temperatures, resulting in copper anode, which is then electrolyzed to produce refined copper. Traditional matte smelting, the main process for copper smelting, is suitable for sulfide ores. One-step copper smelting, with limited industrial application, is suitable for sulfide ores under special raw material conditions. Hydrometallurgy (20%): Copper is enriched in solution through leaching and extraction processes, followed by electrodeposition to produce refined copper. • Leach-extraction-electrodeposition, suitable for oxide ores, especially for large-scale processing of low-grade oxide ores. • Roast-leach-extraction-electrodeposition, suitable for sulfide ores, mixed ores, and copper-cobalt ores. • Oxygen pressure leach-extraction-electrodeposition, suitable for sulfide ores, mixed ores, and copper-cobalt ores. Copper Pyrometallurgical Process Flow It also elaborated on the hydrometallurgical process flow of copper, including roasting, leaching, extraction, and electrodeposition. Several Main Matte Smelting Processes and Their Development ► Flash Smelting: Flash smelting technology includes Outokumpu flash smelting and INCO flash smelting, with Outokumpu technology being widely applied. China began introducing flash smelting technology in the 1980s. Xiangguang Copper innovated boldly based on flash smelting technology, inventing the vortex flash smelting technology, which received a national invention patent. Advantages include high capacity, high automation, and longer furnace life; disadvantages include high investment, complex feed preparation system, poor adaptability to high-impurity raw materials, and the need to reduce costs through scale effects. Recent developments include: high oxygen (even pure oxygen) smelting, further expansion of single-furnace capacity (500,000 mt/a), continuous innovation and improvement of process equipment, and gradual localization. ► Top-Blown Smelting: Top-blown smelting technology, including Ausmelt smelting and ISA smelting, was introduced to China in the 1990s. Characteristics of top-blown smelting technology include using a submerged lance to blow air and oxygen into the melt pool, providing strong stirring and good reaction kinetics, and high production efficiency. Disadvantages include the need to add fuel, inability to separate slag and copper in the furnace, requiring a settling electric furnace, high comprehensive energy consumption, low utilization of oxygen and fuel, and short furnace life. Recent developments include: increasing oxygen concentration, improving matte grade, raising smelting temperature, and continuously extending lance and furnace life. ► Bottom-Blown Smelting: Bottom-blown smelting is a new copper smelting technology with independent intellectual property rights from China ENFI. It was first industrially applied in Vietnam in 2002, and the first bottom-blown copper smelting production line in China was put into operation in 2008. Advantages include simple feed preparation, low furnace investment, high oxygen utilization, and strong adaptability to raw materials, capable of handling high-impurity raw materials. Disadvantages include high copper content in slag and low direct recovery rate. Developments include: further expansion of single-furnace processing capacity (1.8 million mt/a of concentrate); as a representative technology for matte gold capture, it has low requirements for copper content in concentrate and has been applied in complex gold concentrate processing at Shandong Humon, Central China Gold, and Guotou Jincheng. Zhongjin Lingnan Copper Co., Ltd. (formerly Dongying Fangyuan) developed the "Zhongjin Method" for two-step copper smelting based on bottom-blown smelting. China ENFI and Baotou Huading Copper Industry developed the full bottom-blow three-furnace process based on bottom-blown smelting and continuous bottom-blowing. ► Side-Blown Smelting: Based on Vanyukov smelting technology, China developed and applied oxygen-enriched double side-blowing smelting technology in 2009, which has rapidly developed in recent years. Characteristics of side-blown smelting technology include blowing air and oxygen into the melt pool through tuyeres on both sides of the furnace, improving mass and heat transfer conditions, with low blowing pressure, low copper content in slag, and relatively simple operation. Disadvantages include the need for manual opening and plugging of tuyeres and the need to add coal (mainly to inhibit magnetic iron in slag). Recent developments: Rapidly achieved a leap from 100,000 mt capacity to 400,000 mt capacity, with the maximum bed area reaching 70 square meters. ► P-S Converter Blowing: P-S converter blowing, invented in 1905, has been used for over a century and remains the primary copper matte blowing technology worldwide. Advantages include flexible operation and the ability to balance various cold copper-containing materials and externally purchased cold copper using reaction heat. Disadvantages include periodic intermittent operation, large fluctuations in flue gas volume and sulfur content, which are unfavorable for acid-making systems, large flue gas collection volumes, and difficult-to-solve low-altitude SO2 pollution caused by ladle lifting. The drawbacks of P-S converters have prompted metallurgists to seek continuous blowing technologies. ► Flash Blowing: The world's first flash blowing furnace was commissioned at Kennecott Utah Copper in 1995, forming the "double flash" process when paired with flash smelting. Xiangguang Copper was the first in China to introduce "double flash" technology, and the first flash blowing furnace in China was put into operation in 2007. After years of improvement, it developed into vortex flash blowing technology. Currently, there are six flash blowing furnaces in operation in China, five of which are paired with flash smelting, each with a capacity of over 400,000 mt/a, and one paired with bottom-blown smelting, with a capacity of 300,000-400,000 mt/a. Advantages include easy measurement of solid matte, high automation, and high operating rate. Disadvantages include the need for additional grinding equipment for matte and limitations in handling cold materials like anode stubs due to furnace structure and thermal balance. The maximum single-unit designed capacity has reached 500,000 mt/a. Additionally, it provided a detailed introduction to the processes and developments of bottom-blowing and multi-lance top-blowing. 5 Trends in the Copper Smelting Industry Main factors and trends driving global copper smelting development It also reviewed the development policies of China's copper smelting industry and shared interpretations of the main contents of the High-Quality Development Plan for the Copper Industry (2025-2027). 6 Intelligent Development in the Copper Smelting Industry Background of intelligent transformation and upgrading Policy promotion for intelligent transformation and upgrading In March 2021, the State-owned Assets Supervision and Administration Commission (SASAC) issued the Notice on Accelerating the Digital Transformation of State-Owned Enterprises. In November 2021, the MIIT issued the 14th Five-Year Plan for Deep Integration of Informatization and Industrialization. In April 2020, the MIIT, NDRC, and Ministry of Natural Resources jointly released the Guidelines for the Construction of Smart Factories (Mines) in the Nonferrous Metals Industry (Trial). Among these, the Guidelines for the Construction of Smart Smelting Factories in the Nonferrous Metals Industry, led by China ENFI, provide a top-level design for the intelligent development of the nonferrous metal smelting industry. Overall implementation plan for smart factories Expected effects of smart factory implementation It discussed in detail aspects such as organizational management model reconstruction, innovative digital transformation panoramic view, data assetization, and improvement of technical and economic indicators. For more information, click to view the special report on the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo.

SMM Cobalt & Lithium Morning Meeting Summary: This week, the spot price of refined cobalt remained relatively stable. From the supply side, the current social inventory in the market remains relatively high, but there are slight differences in the inventory structure. From the producer side, due to the sustained high prices of raw materials, the economic efficiency of refined cobalt production is poor. Production cuts by smelters may continue in the future, but the overall supply of spot cargo in the market remains sufficient. From the demand side, inquiries and purchases from downstream producers were slightly mediocre. It is expected that this week, the refined cobalt price will maintain a fluctuating trend.

SMM April 25 News: This week, spot prices of cobalt products generally showed an upward trend. In the case of refined cobalt, due to the persistently high raw material prices, some smelters have already started to cut production... SMM has compiled the price changes of cobalt products this week, as follows: Refined cobalt: According to SMM spot price data, the spot price of refined cobalt showed an upward trend this week. As of April 25, the spot price of refined cobalt rose to 232,000-249,000 yuan/mt, with an average price of 240,500 yuan/mt, up 500 yuan/mt from April 18, an increase of 0.21%. From the supply side, the social inventory of the refined cobalt market remains high, but the inventory structure is slightly different. On the supply side, due to the high raw material prices, the production economics of refined cobalt are poor, and the production enthusiasm of smelters is low, with some smelters cutting production. On the demand side, downstream producers' inquiries have slightly increased, but their willingness to stock up at high prices is not strong. It is expected that the price of refined cobalt will maintain a fluctuating trend next week. Cobalt salts (cobalt sulphate and cobalt chloride): According to SMM spot price data, the spot price of cobalt sulphate also showed an upward trend this week. As of April 25, the spot price of cobalt sulphate rose to 48,550-50,200 yuan/mt, with an average price of 49,375 yuan/mt, up 25 yuan/mt from April 18, an increase of 0.05%. From the supply side, the shortage of raw materials in some cobalt salt plants has slightly emerged, and the sentiment of holding back sales has slightly emerged, with the offer price slightly increased, but the actual transaction has not seen significant improvement. From the demand side, downstream producers generally hold a wait-and-see attitude towards new goods from salt plants, and some companies are still digesting old social inventory. It is expected that the short-term supply and demand situation will not improve significantly next week, and the spot price of cobalt sulphate may continue to fluctuate. In the case of cobalt chloride, according to SMM spot price data, the spot price of cobalt chloride also showed an upward trend this week. As of April 25, the spot price of cobalt chloride rose to 59,700-61,100 yuan/mt, with an average price of 60,400 yuan/mt, up 50 yuan/mt from April 18, an increase of 0.08%. From the fundamental perspective, on the supply side, raw material inventory is increasingly tight, and most producers refuse to sell at low prices, and the offer price has been raised accordingly. On the demand side, the just-in-time procurement of downstream Co3O4 manufacturers has driven high-level transactions, which in turn has driven the spot price to rise slightly. It is expected that next week, although the market activity is still not high, the sentiment of holding back sales of suppliers is still strong, and the price of cobalt chloride will continue to operate at a high level, and there is still some room for upward movement. Co3O4: According to SMM spot price data, the spot price of Co3O4 showed a downward trend this week. As of April 25, the spot price of Co3O4 remained at 203,000-217,500 yuan/mt, with an average price of 210,250 yuan/mt, down 250 yuan/mt from April 18, a decrease of 0.12%. From the supply side, most smelters maintained their previous offers and did not make significant adjustments. The demand side was weak, and market activity was not high. Some manufacturers have completed the necessary procurement, and their acceptance of high-priced Co3O4 has declined, and trading activities have also decreased. Based on the current market dynamics and demand trends, it is expected that the price of Co3O4 will still face downward pressure next week. In terms of news, the import and export data of cobalt-related products this week were released. According to data from the General Administration of Customs, China's imports of unwrought cobalt in March 2025 were about 525 mt (metal content), up 10.5% MoM and 135% YoY. In terms of the average import price, the average import price of unwrought cobalt in China in December 2024 was $19,711/mt (metal content), down 8.7% MoM. The cumulative imports from January to March 2025 were 1,499 mt (metal content), up 152.4% YoY. In terms of exports, China's exports of unwrought cobalt in March 2025 were about 1,353 mt (metal content), up 199% MoM and 37% YoY. In terms of the average export price, the average export price of unwrought cobalt in China in March 2025 was $24,255/mt (metal content), up 9% MoM. The cumulative exports from January to March 2025 were 68,412 mt (metal content), down 24.7% YoY. In terms of cobalt intermediate products, according to customs data, China's imports of cobalt hydrometallurgy intermediate products in March 2025 were about 17,850 mt (metal content, converted at 35% grade), up 20.6% MoM and 5.6% YoY. In terms of the average import price, the average import price of cobalt hydrometallurgy intermediate products in China in March 2025 was $12,351/mt (metal content). By country, the DRC remained the main importing country in March, with imports of about 17,600 mt (metal content, converted at 35% grade), an average import price of $12,374/mt (metal content), and an import share of about 98.5%. In terms of corporate dynamics, Tengyuan Cobalt recently released its investor activity record. Tengyuan Cobalt stated that as of the end of Q1 2025, the company had a capacity of 26,500 mt (metal content) of cobalt products, 10,000 mt (metal content) of nickel products, 10,000 mt (metal content) of manganese products, 5,000 mt of lithium carbonate, and 60,000 mt of copper products. In addition, Tengyuan Cobalt was also asked about the production and sales structure of cobalt products in 2024. Tengyuan Cobalt stated that the company's cobalt-related production lines are all flexibly designed and can flexibly adjust the production of various products according to changes in market demand. Overall in 2024, the recovery signal of the consumer electronics market was obvious. The company's cobalt products accounted for about 50% of cobalt chloride, nearly 40% of cobalt sulphate, and refined cobalt was basically at full production. The company also responded to the impact of the DRC's tight cobalt ore exports on the company's production and operation. Tengyuan Cobalt stated that on February 22, 2025, the DRC government issued a policy to suspend the export of cobalt ore (including intermediate products) from the DRC, effective immediately, for a period of 4 months. As of now, the policy is still strictly enforced, and no specific quota implementation measures have been introduced. The main purpose of this export ban is to boost the currently sluggish cobalt market. After the implementation of the ban, cobalt prices have shown an upward trend. It is expected that the DRC government will re-evaluate the effect of the ban in early May. In terms of production, the company has a certain amount of safety stock, and the pressure on raw materials is not significant. The company can obtain raw materials through the purchase of intermediate products and used batteries, and will purchase at the right time, quantity, and price according to the actual market situation in the future. At present, secondary resources are an important part of the company's strategic development, and good and close channel cooperation has been established both at home and abroad, which will serve as an important supplement to this raw material. When asked whether the selling price of cobalt products has been raised, Tengyuan Cobalt stated that the company's cobalt product sales pricing mainly refers to the SMM cobalt product price and the London Metal Bulletin (MB) cobalt metal price, combined with the supply-demand relationship of cobalt products, competitor quotations, and the prices published by the non-ferrous metals network, to comprehensively determine the selling price. After the DRC ban, the SMM and MB cobalt metal prices have both risen, and the company's cobalt product sales are currently normal. When asked about the future expansion plan of cobalt, Tengyuan Cobalt stated that the company's domestic factory currently has a capacity of 26,500 mt (metal content) of cobalt products. According to the company's strategy, the total domestic cobalt product capacity will reach 46,000 mt (metal content) in the future. The company plans to gradually expand production capacity according to the actual market situation. In 2025, in addition to fully releasing the existing cobalt product capacity, the company will prioritize the construction of a 5,000 mt refined cobalt project, and will gradually build Co3O4 expansion projects and fine chemical cobalt product projects.

SMM Cobalt and Lithium Morning Meeting Minutes: Refined cobalt spot prices fluctuated upward this week. Supply side, the current market social inventory remained high, but the inventory structure showed slight differences. Supply side, due to raw materials maintaining high levels, the economic viability of refined cobalt production was poor, and smelters' enthusiasm for refined cobalt production was relatively low, with some smelters implementing production cuts. Demand side, downstream producers' inquiry activity slightly increased, but their willingness to stock up at high prices was not strong. It is expected that refined cobalt prices will maintain a fluctuating trend next week.

The cobalt powder market remained stable this week, with cobalt carbonate prices fluctuating at highs. The export ban on cobalt ore from the DRC is still in effect, and although a policy review is set to begin in May, raw material prices have temporarily stabilized. Market transactions were sluggish, and smelters generally controlled their shipment pace. Demand from the downstream alloy industry was weak, with high inventories and intense industry competition continuously compressing profit margins, leading to low purchase willingness for cobalt powder. In May, the onset of the rainy season and reduced orders are expected to impact production.

【SMM Analysis: Lithium Battery Material Supply Increased MoM in March, New Energy Market Gradually Recovering】SMM, April 1: In March, domestic lithium carbonate production hit a record high, up 23% MoM and 85% YoY. Lithium hydroxide production increased significantly after the holiday, with a growth rate of over 25%, but decreased by more than 5% YoY. Cobalt sulphate production rose 54% MoM. Co3O4 production saw a slight increase both MoM and YoY. Ternary cathode precursor production increased 19.75% MoM but decreased 10.57% YoY. Ternary cathode material production rose 19.99% MoM but fell 7.59% YoY. Iron phosphate production increased 10% MoM and surged 81% YoY. LFP production rose 13.4% MoM and increased approximately 89% YoY. LCO production grew 14% MoM.

SMM Cobalt and Lithium Morning Meeting Summary: At the beginning of this week, the spot price of refined cobalt slightly increased. Supply side, smelters generally adopted a stand firm on quotes approach due to the potential extension of DRC's suspension of cobalt product exports. Demand side, some producers had already completed their purchases, resulting in fewer inquiries from downstream producers and lower actual transactions.