Jinjiang Sifang plans to halt production
2024-04-28 08:11:34 [Print]
BEIJING (Asian Metal) 29 Apr 24 - Jinjiang Sifang Ceramic Color Material Co, a major consumer of cobalt oxide in Fujian, plans to halt production next month, a source from the company reveals to Asian Metal.
"Due to an abundance of inventory, our consumers decide to halt production next month. Consequently, we have decided to temporarily suspend our own production in response then", said the source, adding that demand of their ceramic pigment remains very soft this year.
With an annual consumption capacity of 250t, the consumer anticipates to consume about 10t in April, while they consumed about 4t last month as they just resumed production at the mid of March after Spring Festival. Holding about 30t in the warehouse, they consumed about 80t in 2023 and expect to consume about 50t in 2024 due to the weak demand.
Currently, the prevailing prices of Chinese cobalt oxide 72%min stand at RMB124-127/kg (USD17.1-17.5/kg) delivered D/P, down by about RMB1/kg (USD0.14/kg) from late last week. Considering the decreasing prices of cobalt salts, insiders predict that the mainstream prices of Chinese cobalt oxide would show a downward trend after May Day holiday.
"Due to an abundance of inventory, our consumers decide to halt production next month. Consequently, we have decided to temporarily suspend our own production in response then", said the source, adding that demand of their ceramic pigment remains very soft this year.
With an annual consumption capacity of 250t, the consumer anticipates to consume about 10t in April, while they consumed about 4t last month as they just resumed production at the mid of March after Spring Festival. Holding about 30t in the warehouse, they consumed about 80t in 2023 and expect to consume about 50t in 2024 due to the weak demand.
Currently, the prevailing prices of Chinese cobalt oxide 72%min stand at RMB124-127/kg (USD17.1-17.5/kg) delivered D/P, down by about RMB1/kg (USD0.14/kg) from late last week. Considering the decreasing prices of cobalt salts, insiders predict that the mainstream prices of Chinese cobalt oxide would show a downward trend after May Day holiday.
