Some European cobalt dealers optimistic about market
2008-10-06 10:03:11 【Print】
BEIJING (Asian Metal) 6 Oct 08 – Although demand is weak at the moment, because consumers do not want to hold large inventories at the moment, some European traders still hold positive attitude for the market in coming days
A European trader holds that there is very tight supply of Falconbridge material in market now as the production of Xstrata reduced production in the first half this year to 1,665t from last year’s 1,919t. “Demands in aerospace and specialty chemicals are very good because they need low impurity cobalt, and Falconbridge material has the best quality; already people willing to pay USD4.5/lb premium for the material . ” He thinks price of Falconbridge material is USD36 . 00-38.00/lb, and other brand 99 . 8%min cobalt cathode are selling at around USD35.00/lb .
According to CDI newsletter released in last week, Norilsk production of 99.3%min cobalt ingot in first half of this year reduced to 1,161t from last year’s 2,201t . “The world consumption of 99 . 3%min cobalt ingot is around 5,000t per year, and the supply will be around 2,000t this year, so many consumers will be force to use 99 . 8%min cobalt to substitute 99 . 3%min,” said the trader, and he told Asian Metal that the price of this material is offered in the range of USD33 . 00-34.00/lb .
The trader thinks the sliding economy is driving some small miners out of cobalt market at the moment because the stock share price kept dropping, and he said: “this, planted the seed of future shortage.” He foresees the cobalt market for next year will still be tight supply . With the growing hybrid car and aerospace industries, the source believes the fundamental of cobalt market has not changed that demand is higher than supply . Therefore, even though consumers are not willing to buy large volumes, the future cobalt market still going to be strong .
A European cobalt scrap trader told Asian Metal that price of 99.3%min cobalt is at around USD32 . 00-33.00/lb, and his scrap is traded in the percentage of the above price range . “Demand of the material is ok that I have no problem to sell my material,” said the source .
According to him, because the price for primary products are still high, and consumers are worried about recession in the coming days, cobalt scrap is very good demand because it is sold with a discount of the new material. The source agrees with the previous source that demands for aerospace and chemical industries are good, and he added battery section is also doing well . He opines that the price of cobalt metals will keep at above USD30.00/lb for the rest of the year .
.A European trader holds that there is very tight supply of Falconbridge material in market now as the production of Xstrata reduced production in the first half this year to 1,665t from last year’s 1,919t. “Demands in aerospace and specialty chemicals are very good because they need low impurity cobalt, and Falconbridge material has the best quality; already people willing to pay USD4.5/lb premium for the material . ” He thinks price of Falconbridge material is USD36 . 00-38.00/lb, and other brand 99 . 8%min cobalt cathode are selling at around USD35.00/lb .
According to CDI newsletter released in last week, Norilsk production of 99.3%min cobalt ingot in first half of this year reduced to 1,161t from last year’s 2,201t . “The world consumption of 99 . 3%min cobalt ingot is around 5,000t per year, and the supply will be around 2,000t this year, so many consumers will be force to use 99 . 8%min cobalt to substitute 99 . 3%min,” said the trader, and he told Asian Metal that the price of this material is offered in the range of USD33 . 00-34.00/lb .
The trader thinks the sliding economy is driving some small miners out of cobalt market at the moment because the stock share price kept dropping, and he said: “this, planted the seed of future shortage.” He foresees the cobalt market for next year will still be tight supply . With the growing hybrid car and aerospace industries, the source believes the fundamental of cobalt market has not changed that demand is higher than supply . Therefore, even though consumers are not willing to buy large volumes, the future cobalt market still going to be strong .
A European cobalt scrap trader told Asian Metal that price of 99.3%min cobalt is at around USD32 . 00-33.00/lb, and his scrap is traded in the percentage of the above price range . “Demand of the material is ok that I have no problem to sell my material,” said the source .
According to him, because the price for primary products are still high, and consumers are worried about recession in the coming days, cobalt scrap is very good demand because it is sold with a discount of the new material. The source agrees with the previous source that demands for aerospace and chemical industries are good, and he added battery section is also doing well . He opines that the price of cobalt metals will keep at above USD30.00/lb for the rest of the year .