Africa logistics woes see cobalt hydroxide payables tick higher

Spot payables for cobalt intermediates moved higher in the first half of this week after buyers in Asia reviewed their nearby stock levels in the context of a slower-than-expected restart in shipping from South Africa, and border closures between Tanzania and Zambia.

Fastmarkets’ cobalt hydroxide payable indicator, min 30% Co, cif China edged higher to 62-64% of the standard-grade metal price (low-end) on Wednesday May 13, up from 61-64% on May 8.
Buyers said their delays were longer than previously expected, with shipments out of the port Durban in South Africa also ramping up at a slower pace than anticipated.
“The shipping time has been longer than expected for some of our diverted material - there’s a six- or seven-week delay in total,” a consumer source said.
Sellers also raised their offers and declined any cheaper bids in the first half of the week.

On top of delays getting usual volumes flowing out of Durban, a temporary closure at the border between Zambia and Tanzania has created concerns over delays trucking material from the Democratic Republic of the Congo (DRC)...


Charlotte Radford

Susan Zou

May 14, 2020

07:09 GMT

London, Shanghai