SPOTLIGHT: GEM’s purchase of stake in Shu Powders creates global cobalt opportunities for both

Chinese cobalt producer Jingmen GEM’s decision to acquire a 60% stake in Shu Powders creates global opportunities for both companies, and potential challenges for other cobalt powder makers, sources in the cobalt market suggest.

The two companies are complementary: GEM is one of the biggest cobalt powder sellers to the Chinese and Korean markets, while Shu is in a similar position in the USA and Europe. They do not appear to overlap in a big way in terms of their traditional client-bases.
Their main competitors are understood to be Umicore and Freeport Cobalt in the USA and Europe, and Nanjing Hanrui in Asia. The acquisition and Shu and GEM’s expansion plans could mean a shift in market dominance, cobalt market sources have said.

Although GEM and Shu’s sales will remain separate, GEM is likely to aim to expand its presence in the European and US markets, sources said....

Published

Fleur Ritzema

Susan Zou

October 14, 2016

17:44 GMT

London