SHANGHAI Nov. 25 (CBI China) – Cobalt salt producers fell into dilemma: on one hand, weak demand and few transactions; on the other hand, difficulty in finding cobalt ore at low prices.
It is learned the offers of cobalt chloride were at RMB 50,000-55,000/mt, and RMB 50,000/mt for cobalt sulfate. Downstream demand withered 1/3, transactions were very few, traded volume dropped to several tons recently from previously dozens and hundreds of tons.
In addition, although the offer price of cobalt ore fell to USD 11-12/lb, most of cobalt ore suppliers refused to trade at this price, thus it is very difficult for cobalt salt producers to buy cobalt ore at this price.
As a result, some cobalt salt producers with abundant funds refused to move goods at current mainstream quotations for cobalt salt. CBI believes, as it is close to the end of the year, cobalt salt producers are facing expenditures such as loan repayment and year-end dividends. After these issues being solved, cobalt salt producers will not sell off high-cost spot goods any more, by then prices of cobalt salt will reach the bottom.
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