Chinese cobalt oxide market witnesses limited deals
2024-03-22 08:21:22 [Print]
BEIJING (Asian Metal) 22 Mar 24 - Under the weak demand of real estate market and sufficient stocks of consumers, Chinese cobalt oxide market witnesses limited deals after Spring Festival. Today, the mainstream prices of Chinese cobalt oxide 72%min hover at RMB128-130/kg (USD17.8-18.1/kg) delivered D/P, without much change from late last week. Although some suppliers tried to increase their offers this week, most of the consumers still refused to accept. Given the firm prices of suppliers but weak demand, insiders predict that the mainstream prices of Chinese cobalt oxide would hover at the present level in the coming week.
"We didn't place orders after holiday of Spring Festival due to the weak demand and sufficient stocks. We last bought 10t at RMB126/kg (USD17.5/kg) delivered D/P at the end of December", noted a consumer in Fujian, adding that their supplier quoted RMB130/kg (USD18.1/kg) delivered D/P but they could purchase as low as RMB128/kg (USD17.8/kg) from late last week. The consumer stressed that demand of pigment in March of this year reduces by about 10-20% compared with that of the same period of the previous years. But considering that producers plan to hold their prices firm, they anticipate that the prevailing prices of Chinese cobalt oxide would remain steady in the upcoming week.
With an annual consumption capacity of 250t, they plan to consume about 20t this month, while they halted production last month owing to holiday of Spring Festival. They hold about 55t of inventory at the moment.
"We still have stocks of cobalt oxide for consumption of about 5 months now, as a result, we didn't purchase after Spring Festival", noted another consumer in Hunan, who last restocked 4t at RMB129/kg (USD17.9/kg) delivered D/P in December. The consumer got an offer of cobalt oxide 72%min at RMB130/kg (USD18.1/kg) delivered D/P without much counteroffer from late last week. Given that their suppliers have no plan to decrease their prices, they forecast that the mainstream prices of Chinese cobalt oxide would stand at the present level in the forthcoming week.
Based on an annual consumption capacity of 9.6t, the consumer estimates to consume about 400kg in March, while they suspended production last month. They hold around 2.2t of inventory now.
"We didn't place orders after holiday of Spring Festival due to the weak demand and sufficient stocks. We last bought 10t at RMB126/kg (USD17.5/kg) delivered D/P at the end of December", noted a consumer in Fujian, adding that their supplier quoted RMB130/kg (USD18.1/kg) delivered D/P but they could purchase as low as RMB128/kg (USD17.8/kg) from late last week. The consumer stressed that demand of pigment in March of this year reduces by about 10-20% compared with that of the same period of the previous years. But considering that producers plan to hold their prices firm, they anticipate that the prevailing prices of Chinese cobalt oxide would remain steady in the upcoming week.
With an annual consumption capacity of 250t, they plan to consume about 20t this month, while they halted production last month owing to holiday of Spring Festival. They hold about 55t of inventory at the moment.
"We still have stocks of cobalt oxide for consumption of about 5 months now, as a result, we didn't purchase after Spring Festival", noted another consumer in Hunan, who last restocked 4t at RMB129/kg (USD17.9/kg) delivered D/P in December. The consumer got an offer of cobalt oxide 72%min at RMB130/kg (USD18.1/kg) delivered D/P without much counteroffer from late last week. Given that their suppliers have no plan to decrease their prices, they forecast that the mainstream prices of Chinese cobalt oxide would stand at the present level in the forthcoming week.
Based on an annual consumption capacity of 9.6t, the consumer estimates to consume about 400kg in March, while they suspended production last month. They hold around 2.2t of inventory now.
