Chinese cobalt tetroxide producers bearish about the price trend
2024-04-25 08:13:04 [Print]
BEIJING (Asian Metal) 25 Apr 24 - Under the reducing prices of cobalt intermediate, Chinese cobalt tetroxide producers hold bearish attitudes towards the price trend. Today, the mainstream prices of Chinese cobalt tetroxide 73.5%min hover at RMB127-130/kg (USD17.5-17.9/kg) delivered D/A 180 days, down by about RMB2/kg (USD0.28/kg) from late last week. Given the weak demand and downward prices of raw material, insiders predict that the mainstream prices of Chinese cobalt tetroxide would go down in the coming week.
"Our consumers buy inactively this week, and those who have demand mainly buy small volumes due to bearish attitudes. Coupled with the decreasing prices of cobalt sulfate, we foresee that the mainstream prices of Chinese cobalt tetroxide would go down in the coming week", said a producer in South China, who doesn't quote proactively this week. But for firm bids, they could consider the price as low as RMB128/kg (USD17.7/kg) delivered D/A 180 days. The producer refused prices lower than RMB130/kg (USD17.9/kg) delivered D/A 180 days late last week, when they sold 10t at RMB130/kg (USD17.9/kg).
With an annual production capacity of 5,000t, they estimate to produce about 200t this month, the same as last month. They hold around 120t of stocks at the moment.
"Cobalt intermediate prices drop to about USD6.6-6.7/lb already, therefore, we predict that the prevailing prices of Chinese cobalt tetroxide would reduce to about RMB125/kg (USD17.2/kg) in the coming week", noted another producer in South China, adding that they offer RMB129/kg (USD17.8/kg) delivered D/A 180 days and could consider a concession of RMB2/kg (USD0.28/kg) at most this week, while they quoted RMB130/kg (USD17.9/kg) delivered D/A 180 days and refused prices lower than RMB129/kg (USD17.8/kg) late last week. They sold 10t at RMB127/kg (USD17.5/kg) early this week while this consumer usually buys 20t at least. The producer explained that consumers decrease their purchasing volume dragged by their bearish attitudes towards the price trend.
Based on an annual production capacity of 6,000t, the producer plans to produce about 300t this month, up by about 40t MoM. They hold around 300t in the warehouse at present.
"Our consumers buy inactively this week, and those who have demand mainly buy small volumes due to bearish attitudes. Coupled with the decreasing prices of cobalt sulfate, we foresee that the mainstream prices of Chinese cobalt tetroxide would go down in the coming week", said a producer in South China, who doesn't quote proactively this week. But for firm bids, they could consider the price as low as RMB128/kg (USD17.7/kg) delivered D/A 180 days. The producer refused prices lower than RMB130/kg (USD17.9/kg) delivered D/A 180 days late last week, when they sold 10t at RMB130/kg (USD17.9/kg).
With an annual production capacity of 5,000t, they estimate to produce about 200t this month, the same as last month. They hold around 120t of stocks at the moment.
"Cobalt intermediate prices drop to about USD6.6-6.7/lb already, therefore, we predict that the prevailing prices of Chinese cobalt tetroxide would reduce to about RMB125/kg (USD17.2/kg) in the coming week", noted another producer in South China, adding that they offer RMB129/kg (USD17.8/kg) delivered D/A 180 days and could consider a concession of RMB2/kg (USD0.28/kg) at most this week, while they quoted RMB130/kg (USD17.9/kg) delivered D/A 180 days and refused prices lower than RMB129/kg (USD17.8/kg) late last week. They sold 10t at RMB127/kg (USD17.5/kg) early this week while this consumer usually buys 20t at least. The producer explained that consumers decrease their purchasing volume dragged by their bearish attitudes towards the price trend.
Based on an annual production capacity of 6,000t, the producer plans to produce about 300t this month, up by about 40t MoM. They hold around 300t in the warehouse at present.
