Market-makers look for uptick in cobalt hydroxide payables

Cobalt market participants expect a further uptick in cobalt hydroxide payables, following the news that Glencore intends to temporarily shut down its Mutanda project in Democratic Republic of Congo (DRC), Fastmarkets learned at Antaike’s Battery Materials Conference in Guiyang, southwest China, being held August 7-8.

But the slow response of the downstream battery sector may hinder any immediate significant rise in cobalt hydroxide prices, according to conference delegates. Glencore announced earlier on Wednesday August 7 its plan to shut the Mutanda copper-cobalt mine by the end of 2019 due to slumping cobalt prices. At the same time, the trader-miner also slashed its cobalt production guidance figure for 2019 to 43,000 tonnes, from 57,000 tonnes previously. A few conference delegates told Fastmarkets that they have had no updated offer price from major suppliers in recent days, but they expected higher payables once any concrete offers were made. Fastmarkets’ cobalt hydroxide payable indicator, min 30% Co, cif China, was assessed at 59-61% against the low-end price of the standard-grade cobalt...

Published

Susan Zou

August 07, 2019

20:57 GMT

Guiyang