Long-time cobalt trader Nick French
Ever since the collapse of the prolonged commodity bull run in 2008 the hedge funds have veered away from considering the metals asset class as a “buy” (notwithstanding plenty of aggressive short positions in nickel, iron ore and copper). With false bottoms aplenty in the meantime, there is now a genuine sense that the worst may be over for the commodity sector.
So, in this context, is the “buy” word being whispered on the investment street for copper or nickel or aluminium? No, it’s cobalt.
In a recent Financial Times article headlined “China charges into cobalt to take batteries lead”, an analyst was quoted as saying “we do see higher looming cobalt prices as China plays the ‘long game’ to dominate the cobalt supply chain”.
Certainly, those with memories of the bull runs that followed China’s moments of focus on copper, iron ore and rare earths...