SHANGHAI, Sep 10 (SMM)—SMM learned that the National Food and Strategic Reserves Administration will collect and store refined cobalt recently, and a few smelters have confirmed the news last night, but relative details such as purchasing prices and volume have not been determined yet. Currently, domestic refined cobalt inventories were high due to sluggish downstream demand and large inflows of imported materials.
The state is likely to collect and store cobalt for the sake of strategic reserve or supporting smelting enterprises. SMM believes that cobalt prices are likely to surge in the short term if the purchasing volume reaches the expected 2,000 mt, which is equivalent to three-month refined cobalt supply in the domestic market, and this, combined with improved demand, will keep domestic cobalt raw materials inventories in tight balance. But prices are likely to fall after the short-term jump as it approaches the low season. If the collection volume fails to reach 2,000 mt, prices will be little affected.
