How will the soaring price of cobalt affect enamel manufacturers?

Industry data shows that on March 7, the average domestic price of cobalt sulfate was 36,700 yuan per ton. This represents an increase of over 37% compared to the price of 26,650 yuan per ton on February 25, with the highest increase nearing 50% in just a few days.

The surge in cobalt prices is primarily due to supply constraints. The world's largest cobalt producer, the Democratic Republic of the Congo (DRC), announced a suspension of cobalt exports for four months on February 24, 2025. With a cobalt production forecast of 220,000 tons in 2024, accounting for 76% of global output, this move is expected to reduce global cobalt ore supply by about 73,000 tons. Consequently, the cobalt industry faces a shortage of raw materials, driving prices up rapidly.

The new energy industry is the first to be affected by the increase in the price of cobalt, followed by the enameling industry. Enamel manufacturers use cobalt oxide-containing glazes, and an increase in cobalt prices will directly raise the procurement costs of these glazes. If enamel factories cannot fully pass on the increased costs to their product prices, their profit margins will be squeezed.

Rising costs may force enamel manufacturers to reassess their production plans, potentially reducing output or delaying certain projects to cope with cost pressures. This could impact the companies' market share and customer satisfaction, as well as lead to supply chain instability, increasing logistics and management costs.

In response to rising costs, enamel manufacturers can explore alternative materials or adjust the frit formulas. However, these changes may impact product quality, potentially causing fluctuations in aspects such as color, gloss, and corrosion resistance. This would require a reevaluation of processes and quality testing.

Nolifrit, as a supplier of enamel glazes, offers one-stop services and professional solutions to clients. The Nolifrit technical team can customize glaze formulas based on the specific needs and situations of customers. If you have related requirements, feel free to contact us!