African Cathode Long-Term Contracts Face Delays as Market Premiums Diverge

Published: Feb 13, 2026 11:27

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According to SMM, some market participants have recently reported that certain downstream buyers are delaying or failing to execute 2026 long-term contracts for African-origin cathodes .Earlier, driven by U.S. tariff expectations and LME–COMEX arbitrage opportunities, competition for African cathode resources intensified, pushing long-term contract premiums sharply higher on a year-on-year basis. However, with current market premiums at relatively low levels and global inventories continuing to build, a clear divergence has emerged between the long-term contract market and the spot market.

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