Cobalt chloride dealers trapped in between
2006-05-26 08:45:41 【Print】
BEIJING (Asian Metal) 26 May 06 - Cobalt chloride producers reported to Asian Metal that the market seems to be in a standstill despite the fact that Jinchuan raised its cobalt price today.
On May 23, BHP lowered its cobalt quotation from USD16.00/lb to USD15.50/lb after the CDI conference. While in China, as market participants have expected, Jinchuan raised its price from RMB272/kg (USD13.18/lb) to RMB279/kg (USD13.52/lb) yesterday. In that way, Jinchuan's cobalt price is getting closer to Jinchuan cobalt's concluded price of around RMB310/kg (USD15.02/lb) in South China. Market participants believe this will help build up people's confidence in Chinese cobalt market.
However, cobalt chloride producers get bored about the market. A producer who has signed sales contracts with buyers now is bothered by the acceptance draft of six months. "Customers claimed that the cobalt chloride price rises too fast for them to accept and they don't have enough cash to pay," said the source who sells RMB72/kg for the materials, "If we don't accept the draft, they will lower the puchasing price to RMB68-69/kg. So we're trapped in between."
Meanwhile, China is to import about 2,000t of cobalt concentrates less from Congo in 2006 than 2005 as the output there is set to fall.
The tight supply of cobalt concentrates keeps sustaining the whole cobalt market to remain in a high price level, but market players are deeply troubled.
