In addition to a drop in the price of refined cobalt, the prices of cobalt metal and hydroxide fell by 9.1% and 3.7% respectively mom, a shift Benchmark said was driven by producers and traders lowering offers amid limited feedstock buying activity across the cobalt supply chain.

"Whilst this period of inactivity has exerted downward pressure on prices in recent months, industry contacts commented to Benchmark that there is an expectation that prices are likely to reach a bottom in the coming weeks, with buying activity expected to pick up in mid-to-late Q2… as Chinese refiners return to the market once stocks have been worked through in response to robust downstream demand for cobalt from the lithium-ion battery industry," said Benchmark.

"Moreover, participants in the cobalt metal market also reported that demand from some industrial markets, most notably the oil & gas and medical sectors, is starting to show early signs of improvement, brightening the demand outlook for the second half of the year," the battery metals-focused price reporting agency added.

Despite the recent dip since its February peak, the price of cobalt sulphate is still up 70% year-on-year at RMB 74,000/tonne, while cobalt hydroxide is up 108% yoy at US$45,025/t.