Cobalt prices spike by over 5% as Ambatovy cuts, consumer orders bolster bullish mood

Metal Bulletin’s low-grade cobalt prices rallied by as much as 5.5% in the week ended July 29 as unseasonably strong consumer enquiries and news that Ambatovy will miss production targets encouraged sellers to target higher prices.

High-grade cobalt prices also spiked by as much as 4.4% over the course of the week on constrained spot availability and strong interest from superalloys customers, lifting prices to the highest levels since the end of October.  Metal Bulletin assessed low-grade cobalt at $11.65-12.10 per lb on Friday July 29, up from $11.05-11.50 a week earlier, while high-grade cobalt was assessed at $11.85-12.75, up from $11.35-12.20.  On a monthly basis, low-grade cobalt prices were up 9.4% in July, marking the largest monthly increase since January, when prices rebounded 10% following a spate of year-end producer liquidation that took cobalt prices to their lowest level since 2003.  The fact that prices have rallied strongly in July, a typically weak month for end-use demand, has bolstered confidence among traders, as has the strength of drawdowns under annual contracts over the summer months, with...

Published

Mark Burton

August 01, 2016

12:42 GMT

London