Cobalt Prices Remained Bullish due to Expanding Supply Deficit

SHANGHAI, Jan 25 (SMM) - Imports of cobalt intermediate products were 7,862 mt in metal content in December (calculated at 27% grade), up 4% MoM.

According to the feedback from cobalt raw material suppliers and smelters, the shipping schedules were generally delayed by 2-2.5 months in December due to the COVID-19 and insufficient transportation capacity in South Africa, hence the domestic cobalt raw material inventory was still tight. The overseas refined cobalt prices kept rising amid positive fundamentals, resulting in a slight increase in the prices of cobalt intermediate products.

China's cobalt raw material market saw a supply deficit of 20,301 mt in metal content in 2021. The deficit is estimated to ease slightly to 1,100 mt in metal content in January from 1,131 mt in metal content in December.

The increase in domestic refined cobalt prices slowed down amid scarce downstream purchases, but the prices remained firm due to the slight increase in overseas prices.