Chinese cobalt powder producers bearish about market
2024-04-23 08:31:01 [Print]
BEIJING (Asian Metal) 23 Apr 24 - Under the reducing prices of cobalt sulfate and weak demand of cemented carbide industry, Chinese cobalt powder producers hold bearish attitudes towards the price trend. However, the current mainstream prices of Chinese cobalt powder 99.5%min hover at RMB195-200/kg (USD27.5-28.2/kg) delivered D/A 180 days, without much change from late last week. Given the strong bearish attitudes of market participants, the mainstream prices of Chinese cobalt powder are expected to go down this week.
"Our consumers have no desire to restock now and only buy from hand to mouth. Given the inactive buying activities, we think the mainstream prices of Chinese cobalt powder would decline this week", said a producer in Hunan, who offers RMB205/kg (USD28.8/kg) delivered D/A 180 days and could consider a concession of RMB5/kg (USD0.7/kg) at most this morning, when they sold 2t at RMB203/kg (USD28.6/kg). The producer quoted the same offer late last week and sold 500kg at RMB205/kg (USD28.8/kg) then. The producer discloses that they plan to decrease their prices later this week as their prices remain higher than others.
With an annual production capacity of 1,500t, they expect to produce about 40t this month, down by about 18t MoM. They hold about 60t of stocks for the time being.
"Our consumers even don't inquire as they have sufficient stocks now. Taking the slow market movements into consideration, we believe that the prevailing prices of Chinese cobalt powder would show a downward trend this week", stated another producer in Jiangxi, adding that they maintained their quotation stable at RMB200/kg (USD28.2/kg) delivered D/A 180 days and could accept the prices no less than RMB195/kg (USD27.5/kg) from late last week. They get no inquiries today and sold 300kg at RMB200/kg (USD28.2/kg) late last week.
With an annual production capacity of 240t, the producer estimates to produce about 5t this month, down by about 5t MoM. They hold around 6t in the warehouse for the time being. The producer produced about 100t in 2023 and try to produce the same volume in 2024.
"Our consumers have no desire to restock now and only buy from hand to mouth. Given the inactive buying activities, we think the mainstream prices of Chinese cobalt powder would decline this week", said a producer in Hunan, who offers RMB205/kg (USD28.8/kg) delivered D/A 180 days and could consider a concession of RMB5/kg (USD0.7/kg) at most this morning, when they sold 2t at RMB203/kg (USD28.6/kg). The producer quoted the same offer late last week and sold 500kg at RMB205/kg (USD28.8/kg) then. The producer discloses that they plan to decrease their prices later this week as their prices remain higher than others.
With an annual production capacity of 1,500t, they expect to produce about 40t this month, down by about 18t MoM. They hold about 60t of stocks for the time being.
"Our consumers even don't inquire as they have sufficient stocks now. Taking the slow market movements into consideration, we believe that the prevailing prices of Chinese cobalt powder would show a downward trend this week", stated another producer in Jiangxi, adding that they maintained their quotation stable at RMB200/kg (USD28.2/kg) delivered D/A 180 days and could accept the prices no less than RMB195/kg (USD27.5/kg) from late last week. They get no inquiries today and sold 300kg at RMB200/kg (USD28.2/kg) late last week.
With an annual production capacity of 240t, the producer estimates to produce about 5t this month, down by about 5t MoM. They hold around 6t in the warehouse for the time being. The producer produced about 100t in 2023 and try to produce the same volume in 2024.
