Both supply and demand are weak, and domestic cobalt price falls after the holiday

The domestic cobalt price fell in December



According to the data monitoring of the Business News Agency, as of January 8, the domestic cobalt price was 319100 yuan/ton, down 1.33% from the cobalt price of 323400 yuan/ton on January 1. Both supply and demand in the cobalt market are weak, the international cobalt price is falling rapidly, the cobalt salt price is weak, and the domestic cobalt price is fluctuating.


Cobalt market supply


Affected by the previous South African port strike, the arrival data of cobalt raw materials in November decreased and the import volume decreased. It is reported that China will implement zero tariff on the import of some cobalt products (unwrought cobalt) in 2023. The import window of cobalt resources will be enlarged in the future, and the import volume of domestic cobalt market will increase in the future. In general, the supply of cobalt market is weak in the near future and is expected to increase in the future.


Cobalt market demand


3C’s performance update in the electronic field has slowed down, consumers’ enthusiasm for changing machines has weakened, and mobile phone shipments have continued to decline. According to IDC’s report, China’s mobile phone market shipments are expected to decline by 0.9% year-on-year in 2023, and the demand for electronic cobalt will decline. The epidemic prevention policy has been relaxed, the national consumption level is in the recovery stage, the aviation consumption has not been significantly improved, and the demand for cobalt for alloy is still low. The rush loading period of the new energy automobile industry chain ended in the fourth quarter, and the first quarter was the traditional off-season. Some battery plants entered the production reduction plan, the export volume of precursor and positive electrode materials fell, and the demand for cobalt in the new energy automobile market weakened in the first quarter.


Overview and prospect


Bai Jiaxin, data analyst of the Business News Agency, believes that the supply and demand of cobalt market remain weak after the holiday, the international cobalt price has dropped sharply, the cobalt salt price has not stabilized, and the cobalt price has not been supported by the rise of cobalt price. It is expected that the cobalt price will fall in the future.