----Interview with Yuejie Fang
General Manager
Jiangsu Cobetter New Materials Co., Ltd.
Jiangsu Cobetter New Materials Co., Ltd. was established on August 26, 2019. It is a trading company specializing in the sales of new energy materials, metal materials, chemical products, and raw materials (excluding hazardous materials). The company is located in the Putuo District of Shanghai. Since its inception, it has developed long-term and cooperative relationships with industry leaders such as Jinchuan Group, GEM Co., Ltd., and Hanrui Cobalt Co., Ltd. In 2022, the company’s sales reached several billion yuan and have grown steadily year by year, serving clients across multiple industries. The company prioritizes quality and trust, consistently placing product quality and client interests at the forefront of its operations.
Asian Metal: Hello, Mr. Fang! Could you briefly introduce your company and its business?
Mr. Fang: Jiangsu Cobetter New Materials Co., Ltd. was founded on August 26, 2019. We are a trading company specializing in new energy materials, metal materials, chemical products, and raw materials (excluding hazardous materials). Our main products include various brands of cobalt metal, cobalt oxide, cobalt salts, and nickel cathodes. Our office is located in the Putuo District of Shanghai. Since our establishment, we have developed long-term, cooperative relationships with industry leaders such as Jinchuan Group, GEM Co., Ltd., and Hanrui Cobalt Co., Ltd. In 2022, our company achieved sales of several billion yuan, with a year-on-year growth trend. Our client base spans multiple industries, including magnetic materials, high-temperature alloys, catalysts, medical devices, and military applications. We strive to be a trusted partner, adhering to the principle of survival through quality and development through credibility, consistently prioritizing both product quality and client interests.
Asian Metal: What is the current supply situation of the cobalt metal market in China?
Mr. Fang: According to incomplete statistics, China’s domestic cobalt metal production capacity reached approximately 70,000 tons annually by 2024. However, due to current resource control measures in the Democratic Republic of the Congo (DRC), major domestic smelting plants have implemented production halts and reductions, resulting in a significant decline in cobalt metal output this year. We anticipate that China’s annual cobalt metal production may decrease by roughly 40% year-on-year in 2025.
Asian Metal: From 2023 onwards, more enterprises began producing cobalt metal. What do you think are the main reasons for this trend?
Mr. Fang: Since early 2023, cobalt salt prices have steadily declined, creating a price inversion between cobalt salts and cobalt metal. Although cobalt metal prices have dropped repeatedly, profit margins remain substantial when considering raw material costs and processing fees. This has prompted many market enterprises and cobalt salt producers to shift toward processing and selling cobalt metal, leading to the emergence of various brands of cobalt metal in the market in recent years.
Asian Metal: With oversupply, the cobalt metal business in China is becoming increasingly challenging. What are the core competitive advantages of your company?
Mr. Fang: Our company primarily engages in the trade of cobalt metal, cobalt oxide, and other new energy materials. Our products serve a wide range of downstream industries. Our key competitive advantages include sourcing products directly from factories, offering a comprehensive product range with competitive and flexible pricing, and providing a well-established after-sales service system and attentive client support.
Asian Metal: What is the current demand for cobalt metal in China?
Mr. Fang: Based on our observations, domestic demand for cobalt metal has remained relatively stable at around 15,000 to 20,000 tons per year, showing no significant growth compared to previous years. Traditional industries, such as magnetic materials and catalysts, have contracted slightly, whereas the alloy sector has seen modest growth due to government support for military industry development. Overall, cobalt metal consumption in China is stable, without substantial fluctuations.
Asian Metal: Starting February 22, 2025, the DRC imposed a four-month ban on cobalt intermediate exports, followed by a three-month extension on June 21. What impact do you expect these policies to have on cobalt metal supply?
Mr. Fang: We anticipate that the DRC’s export bans could drive a rapid short-term increase in cobalt metal prices. However, the true supply pressure is likely to emerge in the second half of the year, as market inventories gradually deplete and raw material supply remains constrained. Consequently, smelting plants may reduce production or halt operations, leading to further price increases and a potential peak in destocking within the domestic Chinese market.
Asian Metal: Since late February 2025, the price of cobalt metal in China has been rising, stabilizing within a narrow range from late March to June 22, before rising sharply again from June 23. Where do you see prices heading?
Mr. Fang: We believe that cobalt metal prices may peak between mid-July and mid-September. According to our data, regular inventory levels at major Chinese smelting plants should suffice until the end of September. By then, low-priced materials will still be scarce, and imports will remain constrained. As raw material shortages and output reductions take effect, prices could fluctuate between RMB280,000-300,000/t (USD39,091-41,883/t).
Asian Metal: What is your outlook on the price trend of cobalt metal in China for the second half of 2025?
Mr. Fang: Assuming no unusual circumstances and that the DRC maintains its current policies, we expect cobalt metal prices to generally remain within RMB250,000-300,000/t (USD34,903-41,883/t) in the second half of the year. Prices could exceed RMB300,000/t (USD41,883/t) if favorable factors, such as raw material shortages and high domestic costs, occur. However, given past oversupply, brand diversification, and significant social inventory, such high levels are unlikely to be sustained long-term. Ultimately, prices will align with market fundamentals. From an end-user perspective, an optimal cobalt metal price range is RMB250,000-300,000/t (USD34,903-41,883/t), which supports efficient production, value creation, and stable consumption. In recent years, cobalt metal prices have remained low for extended periods, compounded by weak market demand and other factors. To project next year’s price trend, we must monitor subsequent regulatory measures by the Congolese government, as the DRC is a crucial global cobalt supplier. Additionally, trends in raw material prices must be closely tracked, since fluctuations directly impact cobalt metal pricing. Considering these factors, in the absence of significant market changes or positive stimuli, we expect cobalt metal prices to fluctuate around RMB250,000/t (USD34,903/t) next year.
