Review of China's Cobalt Tetraoxide Market in 2024

From the supply side, the supply growth rate of cobaltosic oxide market in China in 2024 is even more significant. In the first quarter, as cobalt prices were at a low level, the market's purchasing aggressiveness increased, coupled with the demand for restocking before the Chinese New Year, which drove the growth of cobalt tetraoxide orders, and the output of smelters increased significantly. Although some small and medium-sized enterprises were briefly overhauled during the Spring Festival, the demand from big factories was more stable, and the overall production remained at a high level. In the second quarter, headline tetraoxo smelters had a good start-up rate and relatively high market concentration, mainly focusing on the delivery of prior orders. Despite the fierce competition in the market for conventional-type tricobalt tetraoxide products, there was still a certain demand for high-voltage products, and the supply was relatively stable. In the third quarter, with the emergence of the willingness of lithium cobaltate manufacturers to stock up and the stimulation of Huawei's new models, the lithium cobaltate market picked up, boosting the demand for cobaltous oxide. Head cobalt tetraoxide smelters maintained a high start-up rate, and enterprises that were previously overhauled have resumed production, increasing overall supply. In the fourth quarter, it is expected that downstream demand for lithium cobaltate will tend to be sluggish, purchasing intention will be weakened, and the production plan of the enterprise may decline.

From the demand side, in the first quarter, as lithium cobalt prices are at a low level, coupled with the Chinese New Year holiday, most of the anode factories shut down. Lithium cobalt acid manufacturers need to build up inventories, the head manufacturers have more production than sales. After the Spring Festival, the market entered the off-season and demand was divided. The output of lithium cobaltate manufacturers in the high voltage market has recovered, but the growth of multiplier market was weak, and the overall demand for cobaltosic oxide is not optimistic. In the second quarter, due to the increase in downstream demand, headline manufacturers in the high-pressure market maintained high productivity and promoted the increase in market scheduling. However, weak market demand for multipliers leads to fierce competition and persistent price wars among small and medium-sized manufacturers. In the third quarter, the release of new models stimulated demand for consumption upgrading, and the annual flagship of domestic mobile phone manufacturers attracted market attention. The overall schedule of lithium cobaltate increased, which led to an increase in the demand for cobaltosic oxide. In the fourth quarter, with the end of a round of stocking cycle, the lithium cobaltate market still maintains a high degree of concentration, and the head enterprise's work rate remains stable. However, small and medium-sized enterprises have been affected by the reduction of orders, and their output has fallen sharply, which has led to a decline in demand for cobaltosic oxide.

On the whole, the lithium cobaltate market showed a certain growth trend throughout the year, which led to an increase in the demand for cobaltosic oxide.