China’s Electrolytic Cobalt Production Rises 5.85% in February

China’s electrolytic cobalt production reached 5,370 tonnes in February, reflecting a 5.85% month-on-month increase and a substantial 120.99% surge compared to the previous year. The rise was driven by major cobalt manufacturers resuming normal operations after the Chinese New Year holiday to fulfill long-term orders.

However, raw material price fluctuations, influenced by export control policies on cobalt raw materials from the Democratic Republic of Congo (DRC), impacted market stability. Uncertainty surrounding these policies led some market participants to adopt a wait-and-see approach, limiting further production growth.

Looking ahead to March, China’s electrolytic cobalt production is projected to rise to approximately 5,600 tonnes. The market is expected to face continued constraints due to the DRC’s export restrictions, intensifying price volatility and disrupting raw material supply chains.

As production costs climb, cobalt salt prices have been rising, prompting some smelters to suspend quotations while awaiting more favorable market conditions. The resulting supply challenges have led to reduced market liquidity and constrained short-term production growth.