Will cobalt market remain bullish for long?
2006-11-20 11:50:43 【Print】
BEIJING (Asian Metal) 20 Nov 06 - Last Friday, both Norilsk and BHP Billiton raised their cobalt prices after a busy week.
BHP Billiton sold two batches of 5t 99.8%min cobalt cathode at USD17.50/lb and USD17.75/lb CIF North American port respectively, and later raised the price concluded to Europe from USD17.50/lb to USD18.00/lb.
Norilsk’s sales came in after it delayed its long-term contracts negotiation, and raised its 99.3%min cobalt ingot price from USD15.40/lb to USD16.00/lb in warehouse Rotterdam.
As most people are optimistic about the future market, some are worried how long would the strong demand last.
According to a European trader, the inquiries slowed down from Thursday last week. “I received many inquiries on Tuesday and Wednesday, but very few on Thursday and Friday.” He takes that many consumers are trying to get material when price was going up, but then they decided to wait when the price exceeded the range they could accept.
The trader confirmed deals of 99.6%min cobalt ingot were concluded at USD15.05/lb earlier last week, but it reached USD16.00-16.50/lb by Friday.
An official from an Indian supplier revealed that he is not offering material in the market at the moment as it is changing too fast. “I offered at around USD16.0/lb at beginning of the week, but not now.”
Expecting 99.3%min ingot price to reach USD17.00/lb and 99.8%min cathode price to reach USD18.00-19.00/lb by the end of November, the official claimed that the price might start to fall after two weeks. “BHP is offering at USD18.00/lb. It is a high price, so the consumers would stop buying. Then we are going to see price starts sliding again,” said the source.
BHP Billiton sold two batches of 5t 99.8%min cobalt cathode at USD17.50/lb and USD17.75/lb CIF North American port respectively, and later raised the price concluded to Europe from USD17.50/lb to USD18.00/lb.
Norilsk’s sales came in after it delayed its long-term contracts negotiation, and raised its 99.3%min cobalt ingot price from USD15.40/lb to USD16.00/lb in warehouse Rotterdam.
As most people are optimistic about the future market, some are worried how long would the strong demand last.
According to a European trader, the inquiries slowed down from Thursday last week. “I received many inquiries on Tuesday and Wednesday, but very few on Thursday and Friday.” He takes that many consumers are trying to get material when price was going up, but then they decided to wait when the price exceeded the range they could accept.
The trader confirmed deals of 99.6%min cobalt ingot were concluded at USD15.05/lb earlier last week, but it reached USD16.00-16.50/lb by Friday.
An official from an Indian supplier revealed that he is not offering material in the market at the moment as it is changing too fast. “I offered at around USD16.0/lb at beginning of the week, but not now.”
Expecting 99.3%min ingot price to reach USD17.00/lb and 99.8%min cathode price to reach USD18.00-19.00/lb by the end of November, the official claimed that the price might start to fall after two weeks. “BHP is offering at USD18.00/lb. It is a high price, so the consumers would stop buying. Then we are going to see price starts sliding again,” said the source.
