Long-term cobalt contract talks in full swing on improved post-Covid outlook

Cobalt market participants in the midst of the latest round of long-term contract negotiations have been speaking of improved demand while sellers have received more requests for longer-term deals and flexibility on volumes amid an easing of pandemic-related concerns.

Buyers’ appetite to lock in metal and hydroxide supply for 2022 and for the years ahead has increased year on year, sources told Fastmarkets.
“In a couple of instances, customers want 2-3-year deals instead of one year. It’s very unusual; I haven’t seen it for 10-15 years,” a trader said.
“Most customers take a chance and renew every year. I am not the only one who is getting these requests. There is obviously a concern over the supply of metal and not much new production coming onstream. If your business relies on metal, you have to take steps to secure it,” he added

Two sources at two different trading houses commented that their customers this year had started long-term negotiations earlier than usual because they have more clarity on their future business. The market widely expects demand to recover from a variety of sectors where cobalt is...

Published

Dalila Ouerghi

Alexander Cook

October 01, 2021

10:30 GMT

London