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Where cobalt to go after Glencore’s news?

Date 11/8/2018 6:40:48 PM Source: SHMET

SHANGHAI, Nov 9 (SHMET) – Cobalt has come under spot light after Glencore announced its sales suspension from its Kamoto mine. The market surged following the news, but industry professionals, who attended the China International Ni & Co Industry Forum 2018 in Xiamen, Fujian province, are not that optimistic.

“Supplies of cobalt raw materials will continue to grow, and China’s cobalt market will shift from a tight balance in 2018 to surplus in 2019,” said Liu Lei, a senior analyst from Antaike.

World’s supplies of raw materials are expected to grow 8.68% year on year to 130,000 mt in 2018, and the supplies in China stood at 62,300 mt in January to September 2018, according to Liu’s data.

“Demand optimism augur well for prices, but slowing downstream purchases and supply growth of raw materials are not positive to prices,” said Liu, expecting price corrections to continue in the market.  

A relatively balanced market was agreed by Jiang Long, general manager of XTC New Energy Materials (Xiamen), expressing no big worries over the supply of raw material.

A broad view at the conference was the current cobalt pricing system could not serve Chinese market participants well, believing the mechanism should be adjusted based market conditions.

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