Other Chinese companies producing cobalt approved for delivery against the LME contract include Jinchuan Group, Yantai Cash Industrial and GEM (Jiangsu) Cobalt Industry.

One of the prevailing China narratives in commodity markets is that the trade dispute with the United States is weakening demand in the world’s biggest importer of natural resources.

Exports of the group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment came in at 3,966 tonnes last month.

Coal stockpiles at China's six largest coastal coal-fired power plants reached 18.32 million tonnes on Wednesday, equivalent to nearly 31 days of daily consumption.

A slowdown in the world's second-biggest economy continues to weigh on demand for the metal.

China's economic growth is expected to slow to a near 30-year low of 6.2% this year, a Reuters poll showed.

Price momentum and structural economic reforms in India and China will also be key demand drivers.

Global holdings in gold-backed ETFs and similar products grew by 127 tonnes (equivalent to $5.5 billion in inflows) in June.