Weak demand drags cobalt payables to 12-week low

Payables for cobalt intermediates continued to fall over the past week, with consumers largely out of the spot market and confident that sufficient raw material supplies will continue to flow through the pipeline.

Fastmarkets’ cobalt hydroxide payable indicator, min 30% Co, cif China settled at 62.5-64.5% of Fastmarkets’ standard-grade cobalt price (low-end) on Wednesday March 25, down from 65-68% a week earlier. Payables are now at their lowest since the start of the year, when they were at 61.5-62%.
The threat of production disruptions in the Democratic Republic of the Congo (DRC) or delays to shipments from the country should its borders be closed and operations at ports be suspended indefinitely in an effort to combat the spread of the novel coronavirus (2019-nCoV) have so far not provided support to cobalt payables.

Instead, sufficient stocks of material on the way to China or in local ports and warehouses, as well as a gloomy outlook...

Published

Charlotte Radford

Susan Zou

March 26, 2020

06:25 GMT

London, Shanghai