Banks, trading houses and hedge funds are among the entities showing a fresh interest in cobalt, even as the blue metal struggles to stage a meaningful price recovery.
Here, Metal Bulletin explores what’s behind the growing interest in the minor metal and considers whether it’s justified.
Among the fresh interest is that from investors, looking to secure material in the hope that prices will rise in the long-term. One US fund was understood to be seeking around 100 tonnes of metal at the recent Cobalt Development Institute (CDI) Conference in Toronto.
And seasoned minor metal traders, like Wogen, who had been largely absent from the cobalt market in recent years, are also believed to be once again eyeing up the blue metal.
Banks, including BTG Pactual, which contrary to the trend among many banks, has been aggressively expanding in commodities, are throwing their hats into the ring too.