Cobalt world price is in a freefall
Metal’s cost has dropped 17% in a month
by Tom Stundza -- Purchasing, 7/30/2008 1:27:00 PM
Cobalt prices in the U.S. have drifted well below the recent range of $40-$50/lb as widespread demand recovery remains elusive for the hard and durable metal used in the aerospace industry and in batteries for hybrid cars.
That may explain why MinorMetals.com this week reports that the spot price of high-grade 99.8% cathode is $35-$36/lb--even lower than the BHP Billiton-posted global price of $38.50/lb for delivery in August. BHP had last sold cobalt at $42/lb on July 10. The MinorMetals.com report also says 99.3% metal is now at $32-$33 while Chinese 99.8% cobalt from Jinchuan is being offered at $32. And, since some traders are reporting offers near the $30 level, the suggestion is that the market price has further to fall. In fact, cobalt prices are expected to weaken further due to increased Central African production.
Domestic cobalt prices have declined 23% since the $52 peak in March to $40 in July. So, according to Purchasingdata.com, U.S.-market cobalt prices averaged $47.50/lb in the seven months of this year, compared with $30 in 2007 and $17 in 2006.
The Platts Metals Daily subscription newsletter earlier interviewed several traders, who all said prices were hypothetical since sales were virtually nonexistent. “There has been a slowdown in summer sales,” says a trader, “and when you couple that with the Chinese situation you can see it trading as low as $30 soon.”
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