Global Market Study on Cobalt Sulfate: Japan to Catch Up with China in Terms of Import and Consumption in the Coming Years


Cobalt Sulfate  Market
  • Published On : Mar-2018 |
  • Pages : 202 Pages |
  • Format :

Global Chemicals and Materials Industry Outlook

Recycle and reuse practices are impacting the sales of virgin materials, resulting into lesser dependency on volume-driven growth. New materials are showcasing potential for driving value-based growth, but chemical companies are still some time away from achieving voluminous production, while maintaining high quality at the same time. Barring few exceptions, a majority of players are still prioritizing short-term volume growth over long-term value growth. Pressure on improving bottom-line is influencing manufacturers to improve efficiency and reduce operational costs. The impact of value-driven growth may not be visible in the short-term, but long-term outlook remains in favor of a balanced approach between value and volume.

Manufacturers are under increasing pressure to incorporate digital solutions in their offerings. Forward-thinking manufacturers are investing in technology to reduce human interference and streamline key operational aspects such as ordering and shipping. Resonating its influence over every industry, Internet of Things (IoT) has the potential to transform and disrupt the chemical sector. Connectivity through IoT devices is gaining traction, whereas product-level sensors on dispensing equipment and barrels are helping manufacturers track their consignments digitally. Through assessment of long-term benefits, chemical companies are capitalizing on digitization by adopting digital platforms & processes that eliminate human error in profit-associated operations.

Manufacturers continue seeking low-priced feedstock in a bid to marginally reduce pre-production costs. Industry leaders are joining forces to replace fossil fuel-derived feedstock with bio-based alternatives. However, concerns related to producing affordable and sustainable feedstock at mass scale remains a challenge. Access to quality and affordable feedstock will continue to remain a focus area for manufacturers. Chemical manufacturing processes are running on limited energy, while volume of feedstock is getting stranded at ports as disapproval from import authorities keeps disrupting supply chains in sectors, such as oleo chemicals and petrochemicals industries.

Chemical manufacturers have promised support and adherence to governments & regional authorities that are committing towards green, sustainable initiatives. Development of bio-alternatives is gaining momentum. Research & academic institutes are teaming up with manufacturers to formulate sustainable substitutes for commonly-used chemical substrates. Many companies are keeping a close eye on advancements in “green chemistry.” Shift towards eco-friendly chemicals will gain momentum in the future on the back of government regulations and end-user preference. Rising costs of fossil fuels will also instrument the upsurge for sustainable chemicals manufacturing.

List of factors tracked in the Chemicals and Materials Market Report

  • Chemical Industry Value Add
  • Chemical Sales
  • Per Capita Consumption
  • Standard Capacity Factors
  • Plastics Consumption Outlook
  • Glass Consumption Outlook
  • Policies and Regulations
  • Historical growth of top players
  • Growth in associated markets
  • Net trade scenario
  • Apparent production capacity

Research Methodology

PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any.  In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.

Data Collection

PMR collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.

Data Validation

In this phase, PMR validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.

Data Analysis and Projection

Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.

For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.

Standard Report Structure

  • Executive Summary
  • Market Definition
  • Macro-economic analysis
  • Parent Market Analysis
  • Market Overview
  • Forecast Factors
  • Segmental Analysis and Forecast
  • Regional Analysis
  • Competition Analysis

Market Taxonomy

The global cobalt sulfate market has been segmented into the following:

  • Grade
    • Battery Grade
    • Industrial Grade
    • Agriculture & Feed Grade
  • Application
    • Batteries/Energy Storage
    • Metal Finishing
    • Animal Feed & Soil Additive
    • Inks & Pigments
    • Chemicals
    • Others
  • Region
    • North America
    • Latin America
    • Europe
    • China
    • Japan
    • South East Asia & Pacific
    • Middle East & Africa

Specific Report Inputs

The analyst of the report on cobalt sulfate has specifically scrutinized the production capacity of the companies operating in the global market in order to arrive at the respective and desired data. Other than this, the report has also gauged the number of new companies venturing into the market.

Cobalt has been used as a significant material in the manufacturing of Lithium-ion batteries. However, with the rising pressure in the extraction of cobalt, the market has been facing quite some challenges in the last few years. The price of cobalt is rising owing to the fact that the Democratic Republic of Congo, which is one of the leading regions in terms of the mining of cobalt, has increased taxes, which ultimately increases the price of cobalt and also makes it difficult for several developing regions to import it. Moreover, the London Metal Exchange (LME) fixes the price of cobalt and as the export taxes have taken a sudden blow, the LME has also increased the prices of cobalt globally.

China emerges as market leader both in production and consumption

China is the leading consumer of cobalt sulfate at present and it is expected that by 2020, China will also be the leading producer of cobalt sulfate. China employs the maximum cobalt sulfate being the leading importer. This high consumption of cobalt sulfate can be attributed to the thriving automotive industry in the region. The development of electric and hybrid vehicles and the use of lithium-ion batteries in vehicles is another core factor that is aiding China to maintain its rule over the global market. China and Japan are anticipated to hold a noteworthy market share through 2025. Latin America, trailed by North America, is further anticipated to provide justifiable growth opportunities over the course of the forecast period owing to increasing consumption of cobalt sulfate as animal feed. The future growth potential of the market in the MEA will be relatively stable among all the regional markets.

The production of electric vehicles is expected to play a Herculean role in the growth of the China cobalt sulfate market. Electric vehicles accounted for less than 1% of the new vehicle sales in 2016. Nevertheless, over the next decade, sales could surge as technological advances will address two core obstructions to market growth – limited charging capabilities and expensive battery costs. It has been estimated that electric vehicles could account for about 5%-10% of the total car sales by the end of 2020; and depending on the extent to which they comply with the emission regulations, this share might reach 35%-50% by 2030.

cobalt sulfate marketimage for market

Latin America to maintain a meagre share but still emerge as a prominent market for vendors

The agriculture sector of Latin America is expected to play a pivotal role in the rising consumption of cobalt sulfate in the region. The agriculture sector has been the mainstay of several countries such as Brazil, Mexico, and Argentina, among others. A core part of the GDP’s contribution comes from the agricultural output. Brazil is amongst the top producers of cereals and crops, oilseeds, etc. Foreign direct investments in the agricultural sector, such as investments in the Latin American agricultural sector by China, and overseas agricultural investments progressively seek to control production, processing and logistics for merchandises that cannot be supplied domestically. Cobalt sulfate is one of the protuberant feed supplements and is utilized in micro-nutrition and veterinary products. This in turn will spur the demand for cobalt sulfate, which is expected to rise considerably in the near future in the region.

Company Profiles

  • Umicore
  • PJSC MMC Norilsk Nickel
  • Freeport Cobalt Oy
  • Nicomet Industries Limited
  • Huayou Cobalt Co., Ltd.
  • Nantong Xinwei Nickel & Cobalt Hightech Development Co., Ltd.
  • ALT Cobalt & Nickel Products (Dalian) C o., Ltd.
  • Jiayuan Cobalt Holdings Limited
  • INCASA SA
  • Cangzhou Tengyuan Cobalt Industry Co., Ltd.
  • Zhangjiagang Huayi Chemical Co., Ltd.
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