China cobalt metal price trends downwards
2015-08-27 14:44:38 [Print]
BEIJING (Asian Metal) 27 Aug 15 - The Chinese brand cobalt metal 99.8%min price continues the downward tendency this week after it fell to RMB213-215/kg (USD15.1-15.2/lb) VAT included early this month due to the weak demand. Participants forecast that the price is likely to fall to around RMB210/kg (USD14.9/lb) in the near future, while the price of Chambishi’s materials decreases to around RMB207/kg (USD14.7/lb) accordingly.
A consumer in North China told Asian Metal that they just purchased around 3 tons of Jinchuan cobalt metal last week at RMB212/kg (USD15.0/lb) DDP, down by around RMB3/kg (USD0.21/lb) compared with the last deal in late July for the same brand. “The cobalt metal price is still unstable, we dare not purchase too much one time,” said the source, forecasting the price may drop to RMB210/kg (USD14.9/lb) in the first half of September.
Due to the sliding orders for their magnetic products, the consumer’s demand for cobalt metal almost decreased by a half in the first half of this year compared with the same time last year. “We consume around 5 tons of cobalt metal per month, but only purchase 2-3 tons each time because of the sliding price,” said the source who mainly uses Jinchuan and KLK cobalt metal.
A source from a major Chinese producer confirmed that the cobalt metal market is still inactive with soft demand for spot materials. “We keep the price at around RMB213/kg (USD15.1/lb) DDP currently, but very clearly feel the sliding demand,” said the source, admitting that the price may fall further to RMB210/kg (USD14.9/lb) at the beginning of September.
With a capacity of around 2,500tpy, the source produced around 170tpm of cobalt metal in Q2, most of which has been delivered by long-termed contracts. “We have fixed clients to buy the materials by long-termed contracts, but the stocks have increased obviously in recent two months for the weak demand in spot market,” the source added.
A consumer in North China told Asian Metal that they just purchased around 3 tons of Jinchuan cobalt metal last week at RMB212/kg (USD15.0/lb) DDP, down by around RMB3/kg (USD0.21/lb) compared with the last deal in late July for the same brand. “The cobalt metal price is still unstable, we dare not purchase too much one time,” said the source, forecasting the price may drop to RMB210/kg (USD14.9/lb) in the first half of September.
Due to the sliding orders for their magnetic products, the consumer’s demand for cobalt metal almost decreased by a half in the first half of this year compared with the same time last year. “We consume around 5 tons of cobalt metal per month, but only purchase 2-3 tons each time because of the sliding price,” said the source who mainly uses Jinchuan and KLK cobalt metal.
A source from a major Chinese producer confirmed that the cobalt metal market is still inactive with soft demand for spot materials. “We keep the price at around RMB213/kg (USD15.1/lb) DDP currently, but very clearly feel the sliding demand,” said the source, admitting that the price may fall further to RMB210/kg (USD14.9/lb) at the beginning of September.
With a capacity of around 2,500tpy, the source produced around 170tpm of cobalt metal in Q2, most of which has been delivered by long-termed contracts. “We have fixed clients to buy the materials by long-termed contracts, but the stocks have increased obviously in recent two months for the weak demand in spot market,” the source added.
Cobalt Metal 99.8%min Delivered China
Unit:RMB/kg
China cobalt metal producers' operating rate statistics by province by month
Unit: %
