Chinese cobalt oxide suppliers expect stable prices
2024-03-15 08:20:38 [Print]
BEIJING (Asian Metal) 15 Mar 24 - Although prices of cobalt sulfate increased slightly and some cobalt oxide producers increased their offers this week, under the soft demand of ceramic and pigment industry, Chinese cobalt oxide suppliers still expect stable prices in the coming week. The current mainstream prices of Chinese cobalt oxide 72%min hover at RMB128-130/kg (USD17.8-18.1/kg) delivered D/P, up by about RMB1/kg (USD0.14/kg) from late last week. Given the firm prices of raw material but soft demand, insiders predict that the mainstream prices of Chinese cobalt oxide would level off in the coming week.
"Considering the bullish attitudes of producers but oversupply, we anticipate that the prevailing prices of Chinese cobalt oxide would remain steady in the upcoming week", said a trader in Hunan, who offers RMB130/kg (USD18.1/kg) delivered D/A 180 days without any concession for cobalt oxide 72%min today, when they sold 40t at this price. They quoted RMB128/kg (USD17.8/kg) delivered D/A 180 days and refused any lower prices late last week, and they sold 10t at this price then.
With a regular monthly trading volume of about 200t, they expect to sell about 150t in March, up by about 20t MoM. They hold around 150t of stocks now.
"Currently, only one-third of producers resumed production after Spring Festival, compared to 80-90% in previous years due to weak demand this year. Given the soft demand but high prices of raw material, we predict that the mainstream prices of Chinese cobalt oxide would stay flat in the upcoming week", noted a consumer in Fujian, who sold their stocks of cobalt oxide after holiday. They quoted RMB130/kg (USD18.1/kg) delivered D/P for cobalt oxide 72%min from late last week. They sold 2t at RMB130/kg (USD18.1/kg) today and 1t at the same price late last week.
With an annual consumption capacity of 250t, the consumer estimates to consume about 5t this month, while they didn't resume production last month. Holding about 35t at the moment, they consumed about 60t in 2023.
"Considering the bullish attitudes of producers but oversupply, we anticipate that the prevailing prices of Chinese cobalt oxide would remain steady in the upcoming week", said a trader in Hunan, who offers RMB130/kg (USD18.1/kg) delivered D/A 180 days without any concession for cobalt oxide 72%min today, when they sold 40t at this price. They quoted RMB128/kg (USD17.8/kg) delivered D/A 180 days and refused any lower prices late last week, and they sold 10t at this price then.
With a regular monthly trading volume of about 200t, they expect to sell about 150t in March, up by about 20t MoM. They hold around 150t of stocks now.
"Currently, only one-third of producers resumed production after Spring Festival, compared to 80-90% in previous years due to weak demand this year. Given the soft demand but high prices of raw material, we predict that the mainstream prices of Chinese cobalt oxide would stay flat in the upcoming week", noted a consumer in Fujian, who sold their stocks of cobalt oxide after holiday. They quoted RMB130/kg (USD18.1/kg) delivered D/P for cobalt oxide 72%min from late last week. They sold 2t at RMB130/kg (USD18.1/kg) today and 1t at the same price late last week.
With an annual consumption capacity of 250t, the consumer estimates to consume about 5t this month, while they didn't resume production last month. Holding about 35t at the moment, they consumed about 60t in 2023.
